Paris-based Rexel, a company that specialises in the distribution of electrical, heating, lighting, and plumbing equipment, announced on Tuesday, May 30, that it has acquired Wasco, a distributor of HVAC products and services in Twello, the Netherlands.
Guillaume Texier, CEO of Rexel, says, “With the acquisition of Wasco, we are totally in line with our strategy aimed at seizing electrification and energy transition opportunities.”
With a strong presence in the Dutch HVAC market, Wasco has experienced double-digit growth driven by the country’s energy transition and the increasing demand for electrical heat pumps.
This acquisition will enable Rexel to tap into the thriving energy transition markets and leverage cross-selling opportunities.
Wasco: Distributors of HVAC products and services
Wasco, founded in 1970 and owned by Gilde Equity Management, operates 35 branches and two distribution centres in the Netherlands.
With a turnover of approximately €540M over the past twelve months, including a significant portion generated through digital channels, Wasco has established itself as a key player in the Dutch HVAC market.
With this acquisition, Rexel will double in size in the Netherlands, making it the Group’s fourth-biggest country.
This acquisition will also enable Rexel to tap into the thriving energy-transition-related markets and capitalise on emerging energy-transition-related opportunities in the market.
These segments, including HVAC, photovoltaic solutions, industrial automation, and EV charging solutions, offer growth rates that surpass Rexel’s other markets.
Rexel’s existing HVAC business in countries like France, where electric heating is the norm, positions the company well to leverage its expertise in this sector.
With an enterprise value of €485M, the acquisition of the Dutch company represents a compelling opportunity for Rexel.
The transaction, valued at 9.2 times Wasco’s EBITDA, or less than seven times after expected synergies, is expected to enhance Rexel’s adjusted EBITA margin and EPS from year one.
The transaction is subject to customary conditions, including consultation with Wasco’s works council and approval by the competition authority (European Commission). It is anticipated to be finalised in the second half of 2023.
]Texier says, “Wasco is ideally positioned to be an active player in this transition; it is also best-in-class in digitalisation. We are excited to start working with the Wasco team to unleash the great opportunities that the association of both companies in the Netherlands will create.”
“This transaction demonstrates that Rexel continues to carefully select the best development opportunities, accelerating its electrification growth in Europe and reinforcing its positioning in the US, through both organic initiatives and small-to-mid-size value-creating acquisitions,” adds Texier.
