Rexel
Encyclopedia
Rexel is a French group founded in 1967. It is specialised in the professional distribution of electrical supplies. The solutions offered by Rexel cover a wide range of equipment, including lighting, security, automation, climate control, communication, building automation
and renewable energies. The Group has 2,200 sales outlets (branches) in 37 countries and 28,000 employees. Rexel is listed on the Paris stock exchange (Eurolist). The company is a global leader in its market.
From the 1980s, CDME developed in European and international markets, establishing a presence in Cyprus
, Saudi Arabia
, Portugal
, Benelux
, the Federal Republic of Germany, Singapore
and Canada
.
In 1983, CDME entered the unlisted securities market of the Paris stock exchange and became the leading distributor of electrical supplies in France. The company held more than 20 percent of the market in France and a 6-percent share worldwide. In 1986, the company established a presence in the United States. At the time, CDME had around 350 sales outlets, including 65 abroad. In 1987, the Compagnie Française de l’Afrique Occidentale (CFAO) became CDME’s leading shareholder (68 percent).
acquired a majority stake in CDME in December 1990. Pinault Group’s new subsidiary for distributing electrical supplies represented 38 percent of its revenues. CDME was then the leading distributor of electrical supplies (30 percent market share) in France, Belgium and Portugal.
In June 1993, CDME merged with Groupelec Distribution (third on the French market). The group adopted the Rexel name.
In the 1990s, the Group continued to strengthen its business in France, Europe and the United States. The company refocused its business on the distribution of electrical supplies. In effect, it had sold most of its professional electrical distribution business in 1988 and in 1994 sold its subsidiary GDFI, the leading French distributor of industrial supplies.
Gradually, the Group’s subsidiaries reinforced the Rexel brand abroad. Willcox et Gibbs in the United States became Rexel Inc. in 1995, Rexel Italia was created in 2000 from the merger of 10 Italian subsidiaries, and the first joint venture was created in China under the Rexel Hailongxing name.
In 2001, Rexel generated 75 percent of its revenues abroad. At the time, the Group was world leader in its sector with 1,900 sales outlets and 25,000 employees in 33 countries, and it was actively pursuing its acquisitions policy.
(Pinault-Printemps-Redoute) announced the sale of Rexel, which became definitive on March 16, 2005 when a capital stake was acquired by a consortium made up of Clayton, Dubilier & Rice, Eurazeo
, and Merril Lynch Global Private Equity. Rexel delisted from Paris stock exchange on April 25, 2005.
Rexel continued to refocus on its core business. It proceeded to sell assets and engaged in a series of acquisitions. In parallel to the 29 small and medium acquisitions made during this period, in 2006 the Group bought General Electric’s American distribution subsidiary, GE Supply, which it renamed Gexpro. Thanks to this move, Rexel became the market leader in North America and Asia Pacific. Gexpro reinforced the Group’s service business among industrial key accounts. In 2007, Rexel launched a joint takeover bid with the Sonepar Group for the Hagemeyer Group
, which was the global number three at the time. In March 2008, Rexel acquired a majority stake in Hagemeyer’s European assets (Elektroskandia in the Nordics, ABM in Spain and Newey & Eyre in the United Kingdom). Following this acquisition, Rexel doubled its revenues in Europe, increased its sales outlets in the region by 50 percent, and established a presence in five new countries (Finland, Norway and the Baltic Countries). Rexel occupied the number one or two positions in Germany, Spain, the United Kingdom, Sweden and Finland.
In 2007, Rexel changed its structure and became a limited liability company with a management board and a supervisory board (“société anonyme à directoire et conseil de surveillance”). The company was floated on Euronext
Paris on April 4, 2007. In 2008, Rexel’s share of the global market for distributed professional electrical supplies stood at approximately 9 percent. With 2,500 sales outlets across 34 countries, the Group became one of the sector’s key players.
In 2011, the company undertook new acquisitions in emerging markets. In this way, Rexel has strengthened its presence in China with the acquisition of Lucky Well Zhineng and entered the Brazilian and Indian markets with Nortel Suprimentos Industriais and Yantra Automation respectively and in Peru.
The products offered by Rexel cover the entire range of medium-voltage electrical circuits in buildings: secure meters (circuit breakers), electrical conductors (wires and cables), fixtures and protections (skirting boards and cable runs), as well as equipment for protecting circuits (secondary and primary circuit breakers) and connecting and controlling appliances (sockets, contactors and switches). In addition, the Group provides equipment for low-voltage circuits (internet, hi-fi, television and telephone) and technical building management (home and building automation).
The company also offers different electrical equipment for lighting, heating, ventilation, climate control, motors, and brown and white goods, etc. Over the last few years, Rexel has developed low-energy solutions (lighting and high-performance motors), as well as products using renewable energies, solar and wind power, geothermal and aerothermal energy (heat pumps, solar water heaters and climate control solutions).
Rexel, the Group’s main brand, is present in 12 countries: Australia, Belgium, Chile, China, the Czech Republic, France, Italy, Luxembourg, the Netherlands, New Zealand, Portugal and the United States.
The Hagemeyer brand is present in three countries: Australia, Germany and the Netherlands.
Originally Norwegian, the Elektroskandia brand is present in Northern and Eastern Europe (Estonia, Finland, Latvia, Lithuania, Norway, Poland and Russia).
The Group also has around 40 generalist and specialist brands in North America, Latin America, Europe and Asia Pacific.
The supervisory board is made up of the following 12 members:
The Rexel Group withdrew from the Paris stock exchange in 2005 and re-entered it in 2007.
On June 30, 2010, the company’s shareholding was broken down as follows:
Rexel is included in several share indexes: SBF 120
, CAC Mid 100
, CAC All-Trade, CAC AllShares, FTSE EuroMid and FTSE4Goo and STOXX600.
For example, in 2008 Rexel Canada launched the “Hungry for Change” campaign to raise funds for child victims of malnutrition
worldwide. In 2009, the group’s Australian subsidiary participated in volunteer first-aid work led by the local Red Cross during the fires.
Rexel France has signed a tutoring partnership with the Fondation Télémaque to help young people with their academic paths and studies.
For employees, the Group’s social welfare initiatives received a trophy for “international corporate social responsibility” on December 15, 2010. This trophy was awarded fro the Group’s “Rexel + Protection For All” universal welfare scheme, which guarantees a minimum level of social protection against occupational hazards (work accidents and occupational illnesses) in countries where the compulsory regime falls below the standards defined by the Group.
The Rexel Group has initiated a range of action to limit the impact of its business on the environment. Since 2009, 93 percent of its European branches collect end-of-life electrical equipment from their clients (cables, light bulbs and fluorescent tubes). Many branches also implement selective waste disposal (for cardboard, plastic and wood) for recycling or reuse. In addition, Rexel modified its shipping practices in many countries in 2009 to reduce the number of vehicles and their fuel consumption. Rexel has teamed up with numerous suppliers to offer office supplies and products that respect the environment. More recently, the company carried out its first carbon report for 2010.
Building automation
Building automation describes the functionality provided by the control system of a building. A building automation system is an example of a distributed control system...
and renewable energies. The Group has 2,200 sales outlets (branches) in 37 countries and 28,000 employees. Rexel is listed on the Paris stock exchange (Eurolist). The company is a global leader in its market.
1967-90 — Creation: CDME, from French to international
The Rexel group originated from the Compagnie de Distribution de Matériel Electrique (CDME), created in 1967 by Compagnie LEBON. CDME was created by the merger of four companies (Revimex, Facen, Sotel and Lienard-Soval). Specialised in the sale of electrical supplies, the company developed in France by acquiring family-run regional companies. In 1978, CDME launched a branch for the distribution of professional electronic and computing equipment, and diversified into the industrial supplies trade.From the 1980s, CDME developed in European and international markets, establishing a presence in Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...
, Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
, Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
, Benelux
Benelux
The Benelux is an economic union in Western Europe comprising three neighbouring countries, Belgium, the Netherlands, and Luxembourg. These countries are located in northwestern Europe between France and Germany...
, the Federal Republic of Germany, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
.
In 1983, CDME entered the unlisted securities market of the Paris stock exchange and became the leading distributor of electrical supplies in France. The company held more than 20 percent of the market in France and a 6-percent share worldwide. In 1986, the company established a presence in the United States. At the time, CDME had around 350 sales outlets, including 65 abroad. In 1987, the Compagnie Française de l’Afrique Occidentale (CFAO) became CDME’s leading shareholder (68 percent).
1990-2005: the construction of the Rexel Group
Pinault GroupPPR (company)
PPR is a French multinational holding company specializing in retail shops and luxury brands. The company was founded in 1963 by the businessman François Pinault and is now run by his son François-Henri Pinault. It is quoted on Euronext Paris and is a constituent of the CAC 40 index...
acquired a majority stake in CDME in December 1990. Pinault Group’s new subsidiary for distributing electrical supplies represented 38 percent of its revenues. CDME was then the leading distributor of electrical supplies (30 percent market share) in France, Belgium and Portugal.
In June 1993, CDME merged with Groupelec Distribution (third on the French market). The group adopted the Rexel name.
In the 1990s, the Group continued to strengthen its business in France, Europe and the United States. The company refocused its business on the distribution of electrical supplies. In effect, it had sold most of its professional electrical distribution business in 1988 and in 1994 sold its subsidiary GDFI, the leading French distributor of industrial supplies.
Gradually, the Group’s subsidiaries reinforced the Rexel brand abroad. Willcox et Gibbs in the United States became Rexel Inc. in 1995, Rexel Italia was created in 2000 from the merger of 10 Italian subsidiaries, and the first joint venture was created in China under the Rexel Hailongxing name.
In 2001, Rexel generated 75 percent of its revenues abroad. At the time, the Group was world leader in its sector with 1,900 sales outlets and 25,000 employees in 33 countries, and it was actively pursuing its acquisitions policy.
2005-10: consolidation of the global market
The PPR GroupPPR (company)
PPR is a French multinational holding company specializing in retail shops and luxury brands. The company was founded in 1963 by the businessman François Pinault and is now run by his son François-Henri Pinault. It is quoted on Euronext Paris and is a constituent of the CAC 40 index...
(Pinault-Printemps-Redoute) announced the sale of Rexel, which became definitive on March 16, 2005 when a capital stake was acquired by a consortium made up of Clayton, Dubilier & Rice, Eurazeo
Eurazeo
Eurazeo is a French investment company, formed in the merger of Eurafrance and Azeo. Its headquarters are in the 8th arrondissement of Paris.The firm's strategy is to focus on growing companies operating in various markets, with a path to eventually become the chief shareholder of, or at least a...
, and Merril Lynch Global Private Equity. Rexel delisted from Paris stock exchange on April 25, 2005.
Rexel continued to refocus on its core business. It proceeded to sell assets and engaged in a series of acquisitions. In parallel to the 29 small and medium acquisitions made during this period, in 2006 the Group bought General Electric’s American distribution subsidiary, GE Supply, which it renamed Gexpro. Thanks to this move, Rexel became the market leader in North America and Asia Pacific. Gexpro reinforced the Group’s service business among industrial key accounts. In 2007, Rexel launched a joint takeover bid with the Sonepar Group for the Hagemeyer Group
Hagemeyer
Hagemeyer was a business-to-business distribution services group focusing on the markets for electrical materials, safety and other maintenance, repair and operations products in Europe, North America and Asia-Pacific. It was based in the Netherlands but was acquired by rival Rexel in 2008, with...
, which was the global number three at the time. In March 2008, Rexel acquired a majority stake in Hagemeyer’s European assets (Elektroskandia in the Nordics, ABM in Spain and Newey & Eyre in the United Kingdom). Following this acquisition, Rexel doubled its revenues in Europe, increased its sales outlets in the region by 50 percent, and established a presence in five new countries (Finland, Norway and the Baltic Countries). Rexel occupied the number one or two positions in Germany, Spain, the United Kingdom, Sweden and Finland.
In 2007, Rexel changed its structure and became a limited liability company with a management board and a supervisory board (“société anonyme à directoire et conseil de surveillance”). The company was floated on Euronext
Euronext
Euronext N.V. is a pan-European stock exchange based in Amsterdam and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. In addition to equities and derivatives markets, the Euronext group provides clearing and information services...
Paris on April 4, 2007. In 2008, Rexel’s share of the global market for distributed professional electrical supplies stood at approximately 9 percent. With 2,500 sales outlets across 34 countries, the Group became one of the sector’s key players.
In 2011, the company undertook new acquisitions in emerging markets. In this way, Rexel has strengthened its presence in China with the acquisition of Lucky Well Zhineng and entered the Brazilian and Indian markets with Nortel Suprimentos Industriais and Yantra Automation respectively and in Peru.
Activities
Rexel provides the entire range of equipment necessary for installing and using electricity, mainly in residential, commercial and industrial buildings. The Group also supports projects for major industrial infrastructures (mines, oil rigs, etc.)The products offered by Rexel cover the entire range of medium-voltage electrical circuits in buildings: secure meters (circuit breakers), electrical conductors (wires and cables), fixtures and protections (skirting boards and cable runs), as well as equipment for protecting circuits (secondary and primary circuit breakers) and connecting and controlling appliances (sockets, contactors and switches). In addition, the Group provides equipment for low-voltage circuits (internet, hi-fi, television and telephone) and technical building management (home and building automation).
The company also offers different electrical equipment for lighting, heating, ventilation, climate control, motors, and brown and white goods, etc. Over the last few years, Rexel has developed low-energy solutions (lighting and high-performance motors), as well as products using renewable energies, solar and wind power, geothermal and aerothermal energy (heat pumps, solar water heaters and climate control solutions).
Design and distribution of electrical solutions
Rexel designs, advises and markets electrical solutions based on major manufacturers’ offerings (50 percent of its revenues come from 25 main manufacturers). The company carries out its distribution business through generalist and specialist outlets organised in a network of branches. In addition, Rexel offers its clients e-commerce systems, composed of online stores for small and medium companies and electronic data interchange (EDI) systems for key accounts.Consulting and services
Rexel offers additional services within its distribution business. These services include consulting and sales (support for project planning, recommendations, energy audits and financing) and logistics (creation of assembly kits, express delivery and overnight delivery to secure drop-off points).Logistics
Rexel relies on 130 logistical centers worldwide to ensure daily supplies of more than 35,000 inventoried products for its sales outlets and clients. For major projects, Rexel can provide ad-hoc project logistical teams.Clients
Rexel offers products for a wide variety of clients and in particular installation companies, end-users with in-house installation departments, and original equipment manufacturers and panel builders. In 2009, its clients belonged to the following categories:- all types of electrical installation engineers (from individual contractors to companies): 60% of its clients
- industrial companies (manufacturers, component manufacturers and panel builders): 18%
- service companies (retailers and housing/transport infrastructures): 18%
- and finally, local authorities, public bodies, resellers and DIY superstores: 14%
Strategy
The Rexel Group has defined a three-pronged development strategy:- Pursuing growth in the energy efficiency and renewable energy sector. Rexel believes that in five years, solutions linked to new energies and low-energy buildings will account for more than half of its business.
- Expanding its service offering upstream and downstream beyond its distribution role: auditing, consulting, installation and maintenance
- International growth through acquisitions in emerging markets and strong-growth economies such as China, Southeast Asia, India, Latin America and the Middle East. The Group is also consolidating its business in the mature European and North American markets.
Brands
The Rexel Group has a sales network of more than 40 brands, the largest of which are Rexel, Gexpro, Hagemeyer and Elektroskandia.Rexel, the Group’s main brand, is present in 12 countries: Australia, Belgium, Chile, China, the Czech Republic, France, Italy, Luxembourg, the Netherlands, New Zealand, Portugal and the United States.
The Hagemeyer brand is present in three countries: Australia, Germany and the Netherlands.
Originally Norwegian, the Elektroskandia brand is present in Northern and Eastern Europe (Estonia, Finland, Latvia, Lithuania, Norway, Poland and Russia).
The Group also has around 40 generalist and specialist brands in North America, Latin America, Europe and Asia Pacific.
Corporate governance
Since 2007, the Rexel Group has operated as a limited liability company with a management board and a supervisory board (“société anonyme à directoire et conseil de surveillance”).Management board
The board of directors is the Group’s governing and decision-making body. It is made up of the following five members:- Jean-Charles Pauze, Chairman of the Management Board, and Chief Executive Officer
- Rudy Provoost, Board member
- Michel Favre, Management Board member, Chief Financial Officer and Group Senior Vice President
- Pascal Martin, Management Board member, Group Senior Vice President Business Development and Corporate Operations
- Jean-Dominique Perret, Management Board member, Group Senior Vice President Human Resources, Group Delegate for International Businesses
Supervisory board
The supervisory board ensures that the strategy implemented by the board of directors is in line with the strategic priorities defined by the group. It authorises the annual budget, the strategic plan, capital transactions, bond issues and all major operations that could modify the group’s scope of activity or financial structure. It is made up of four specialised committees: the Audit Committee, Compensation Committee, Nominations Committee and Strategic Committee.The supervisory board is made up of the following 12 members:
- Roberto Quarta, président
- Patrick Sayer, vice-président
- Joe Adorjan*
- François David*
- Eurazeo represented by Marc Frappier
- Fritz Fröhlich*
- Françoise Gri*
- Manfred Kindle
- Luis Marini-Portugal
- David Novak
- Angel L. Morales
- Akshay Singh
- independent member
Executive team
The executive team manages the group’s business activities. It brings together the managing directors of each geographical zone, the communications and sustainable development director and members of Rexel’s management board. Rexel’s executive team is made up of the following members:- Jean-Charles Pauze
- rudy Provoost
- Michel Favre
- Pascal Martin
- Jean-Dominique Perret
- Pascale Giet
- Patrick Bérard
- Jérémy de Brabant
- Henri-Paul Laschkar
- Michel Klein
- Chris Hartmann
- Mitch Williams
- Jeff Hall
- Hubert Salmon
Previous presidents
- Alain Redheuil (1996-2002)
- Serge Weinberg (1990-96)
- Bernard Clerc (1973-90)
Financial data
Rexel group’s revenues at December 31, 2009 were 11.3 billion euros. The breakdown by geographical zone was as follows: Europe (59.3 percent), North America (29.3 percent), Asia Pacific (7.5 percent) and other countries (3.9 percent). The breakdown by sector is as follows: service sector (43 percent), residential sector (25 percent) and industrial sector (32 percent). In 2009, the Group’s operating income stood at 315.9 million euros.Stock market information
Rexel was listed on the Paris stock exchange for the first time in 1983 (ISIN code: FR0010451203). The Group was then acquired in 1990 by the Pinault Group. On December 13, 2004, the PPR Group signed off on the sale of its subsidiary Rexel to the investment consortium Ray Investment, composed mainly of Clayton Dubilier & Rice, Eurazeo and Merrill Lynch Global Private Equity (as known as BAML Capital Partners since 2009).The Rexel Group withdrew from the Paris stock exchange in 2005 and re-entered it in 2007.
On June 30, 2010, the company’s shareholding was broken down as follows:
- Ray investment sarl: 71.3 percent
- Flottant: 27.0 percent
- Rexel directors and employees: 1.7 percent
Rexel is included in several share indexes: SBF 120
SBF 120
The SBF 120 is a French stock market index. The index is based on the 120 most actively traded stocks listed in Paris. It includes all 40 stocks in the CAC 40 index plus a selection of 80 additional stocks listed on the Premier Marché and Second Marché under Euronext Paris....
, CAC Mid 100
CAC Mid 100
The CAC Mid 60 is a stock market index used by the Paris Bourse. It is a mid-cap index which represents the 60 largest French equities after the CAC 40 and the CAC Next 20...
, CAC All-Trade, CAC AllShares, FTSE EuroMid and FTSE4Goo and STOXX600.
Extra-financial information
The Rexel Group has 40 brands in a network of 2,100 branches in 37 countries. The company has 28,000 employees, including 23.6% women. In 2009, 59 percent of Rexel group branches participated in recycling the waste from electrical and electronic equipment.Social and environnental responsibility
Rexel Group subsidiaries participate in social initiatives. Rexel supports its employees’ involvement in local projects (medial research, vocational training and humanitarian work).For example, in 2008 Rexel Canada launched the “Hungry for Change” campaign to raise funds for child victims of malnutrition
Malnutrition
Malnutrition is the condition that results from taking an unbalanced diet in which certain nutrients are lacking, in excess , or in the wrong proportions....
worldwide. In 2009, the group’s Australian subsidiary participated in volunteer first-aid work led by the local Red Cross during the fires.
Rexel France has signed a tutoring partnership with the Fondation Télémaque to help young people with their academic paths and studies.
For employees, the Group’s social welfare initiatives received a trophy for “international corporate social responsibility” on December 15, 2010. This trophy was awarded fro the Group’s “Rexel + Protection For All” universal welfare scheme, which guarantees a minimum level of social protection against occupational hazards (work accidents and occupational illnesses) in countries where the compulsory regime falls below the standards defined by the Group.
The Rexel Group has initiated a range of action to limit the impact of its business on the environment. Since 2009, 93 percent of its European branches collect end-of-life electrical equipment from their clients (cables, light bulbs and fluorescent tubes). Many branches also implement selective waste disposal (for cardboard, plastic and wood) for recycling or reuse. In addition, Rexel modified its shipping practices in many countries in 2009 to reduce the number of vehicles and their fuel consumption. Rexel has teamed up with numerous suppliers to offer office supplies and products that respect the environment. More recently, the company carried out its first carbon report for 2010.