France-based Sonepar, the global leader in electrical distribution with operations in 40 countries and total turnover of + € 16 B ($20.7 billion), has announced that it has entered into an agreement to purchase the shares of Industrial Distribution Group (IDG) and Routeco Group Holdings Ltd.
Founded in 1997, Belmont, North Carolina-based IDG is the largest privately owned industrial MRO distributor in the United States. The Company serves its customers from 42 branches in the U.S. and over 170 on-site customer locations in North America, Asia, and Europe. IDG came in at No. 22 on Industrial Distribution's 2014 Big 50 list of the largest industrial distributors by revenue.
It operates in three major businesses: Industrial distribution, integrated supply solutions and energy distribution.
The acquisition reinforces strategic commitment of Sonepar to Industrial/MRO business. It also strengthens Sonepar USA position in the Integrated Supply National market with strong expansion perspective.
The combined synergies between Hagemeyer North America and IDG in the Integrated Supply, Industrial Distribution and Technical Services areas will allow Sonepar USA to expand its core offerings to better meet and exceed the needs of its customers.
The transaction with Routeco, which is subject to approval from competition authorities in Austria, is expected to close during the fourth quarter of 2014.
Founded in 1978 in Milton Keynes, Routeco has become one of the leading distributors of industrial control and automation products and services in the U.K. and reached €135 m ($174.3 million) sales in FY 2014.
Routeco has been a Rockwell Automation authorized distributor since 1992 and serves its customers via 13 branches across the UK. Routeco also has operations in Austria and in the Netherlands.
The acquisition underlines the ongoing efforts of Sonepar to strengthen its position with entries into new countries as well as into the immense market of industrial automation.
Routeco will continue to operate as a separate Business Unit within Sonepar Northern Europe. Ian Stewart (CEO) and the existing management team that has driven the development over the last 25 years will remain in charge.
Routeco will continue to work closely together with Rockwell Automation and will be supported by Sonepar to improve the value proposition to its loyal customers base, through providing support in offering more complementary lines, supply chain services and e-commerce capabilities.