Electrical supply giant Rexel has turned away a buyout bid from a billionaire-backed building materials distribution startup, the company announced Sunday.
The French company confirmed that it received an “unsolicited, non-binding” proposal from QXO to acquire it for an “indicative price” of between 28 and 28.40 euros per share — roughly $9.4 billion, according to Reuters.
The company’s board “unanimously” decided against further pursuing the deal, Rexel said in the statement. Officials said the proposal “significantly undervalues the company and does not reflect its value creation potential."
“The board of directors remains highly confident in Rexel’s management to deliver the mid-term objectives presented … during the June 2024 Capital Markets Day,” the company said. “Indeed, Rexel’s management team has successfully demonstrated over the last few years its ability to increase the company’s underlying profitability and enhance its growth profile in an accelerating electrification world.”
QXO, formed in June by Brad Jacobs — who formerly headed third-party logistics giant XPO — has broadly outlined plans to quickly scale into a leader in the building materials distribution sector, in large part through “significant acquisitions.” The company does not currently plan to make an improved buyout bid for Rexel, a source told Reuters.
