Rexel Buys GCG for $1.4B in US Expansion

French electrical distribution giant Rexel has finalized an agreement to acquire GCG, a prominent US distributor of specialty wire, cable, and connectivity solutions, in a transaction valued at $1.4 billion. This strategic move marks a significant expansion for Rexel into the North American market, particularly within high-growth sectors like data centers and power infrastructure.

The acquisition concludes a seven-year ownership tenure for Audax Private Equity, which originally purchased GCG in 2019 as a carve-out from Genuine Parts' Electrical Specialties Group. Audax implemented a robust buy-and-build strategy, establishing GCG as a standalone entity and executing 12 bolt-on acquisitions. This approach successfully refocused the company on its core competencies, leading to substantial revenue growth and enhanced profitability, with GCG's 2026 revenue projected to surpass $1.1 billion.

GCG's operational footprint includes 16 facilities across the United States and a workforce of approximately 950 employees. The company serves critical industries such as data centers, power and utilities, grid modernization, communications, and defense, areas experiencing sustained investment and technological advancement. This strategic alignment with key infrastructure and technology trends was a key driver for Rexel's interest.

Rexel views the acquisition as a pivotal step in its global strategy, aiming to strengthen its position in the North American electrical distribution market. The company anticipates that the deal, once run-rate synergies are factored in, represents a multiple of less than 8x estimated 2026 EBITDAaL. To finance the transaction, Rexel plans to utilize existing cash reserves and secure approximately €800 million in new debt. Furthermore, a €500 million equity raise via an accelerated bookbuild is planned to maintain its credit rating.

This exit represents the seventh successful realization for Audax Private Equity's Flagship strategy in 2026, underscoring the firm's consistent ability to drive value creation. Notable previous exits for the firm this year include Flow Control Holdings, StatLab Medical Products, and FDH Aero. As of July, Audax managed a substantial portfolio valued at approximately $20.1 billion.

The transaction is anticipated to be completed by year-end, pending customary regulatory approvals. The integration of GCG is expected to provide Rexel with enhanced scale, a broader product offering, and deeper market penetration in the United States, positioning the combined entity for continued growth in the dynamic electrical distribution sector.