Rexel Group, a large distributor of electrical supplies, Monday said it agreed to buy GE Supply, General Electric's electrical distribution business, for $725 million.
GE Supply is a leading distributor of electrical products produced by GE and more than 200 other manufacturers. The business is headquartered in Shelton, Connecticut, and employs approximately 2,500 people in more than 150 locations around the world. GE Supply's core electrical distribution activities operate mainly in the U.S.Rexel said it will benefit from GE Supply's large project management experience and national footprint to attract key accounts with a differentiated service offering. Rexel will also gain expertise in the GE Supply's highly attractive outsourced offering through the GE Supply Logistics and GE Production Services divisions.
Upon closing, GE Supply will operate as a stand-alone organization and will report to the newly-created Rexel U.S. Holding group currently headed by Dick Waterman, Rexel Inc.'s Executive Vice President and CEO. Senior Vice President and CEO of GE Supply, Jeff Schaper, along with his leadership team, will continue to operate the business.
The transaction is expected to close by early August 2006.