Rexel, a leading global distributor of electrical products, services, and solutions for the industrial, commercial, and residential markets, has entered into an agreement with Audax Private Equity to acquire GCG (Genuine Cable Group), a leading U.S. provider of specialty wire and cable, connectivity, power, and engineered solutions for critical infrastructure applications. The transaction values GCG at an enterprise value of approximately $1.4 Billion, corresponding to a multiple below 8x 2026E EBITDAaL including anticipated run-rate synergies. This marks a key milestone in Rexel’s strategic roadmap to accelerate growth in its core geographies and reposition the Group toward higher-value infrastructure segments.
Headquartered in Chicago, Illinois, GCG operates 16 locations with approximately 950 employees and is expected to reach over $1.1 Billion in revenue in 2026. The business combines specialty distribution with a complete range of advanced services, including engineering, custom assembly, product modification, kitting, testing, and rapid fulfillment. A significant portion of GCG’s revenue is generated from proprietary offerings, while more than 75% incorporates value-added products or services, allowing the company to participate further upstream in product design and specification, help customers reduce installation time and labor, and build more embedded customer relationships. More than 60% of GCG’s revenue is exposed to high-growth segments including data centers, power and utilities infrastructure, grid modernization, communications, defense, and other long-term growth markets where artificial intelligence, rising electricity demand, and increasing technical complexity are driving sustained infrastructure investment. Since 2019, GCG has delivered double-digit annual revenue growth and is expected to reach approximately an 11% EBITA margin in 2026.
With this acquisition, Rexel is positioning itself at the center of several powerful mega trends reshaping the global economy and its electrification, while expanding its addressable market and moving further into higher-value parts of the infrastructure value chain. The transaction creates a more complete offering across electrical power and digital connectivity and is expected to generate meaningful cost synergies through scale, logistics optimization, insourcing, and select efficiencies. The combination will also unlock more commercial opportunities by bringing GCG’s engineered solutions and specialty distribution capabilities to Rexel’s broader customer base. Speaking about the impact of the acquisition, Guillaume Texier, Chief Executive Officer of Rexel, stated:
“The acquisition of GCG is an exciting and major step forward in Rexel’s strategy. It significantly expands our addressable market, strengthening our position in key, fast-growing segments... It is financially attractive, immediately accretive to adjusted earnings and to Rexel’s EBITA margin, with substantial additional value creation potential from synergies and commercial expansion. GCG also brings high-quality, talented teams with a strong reputation with customers, suppliers and partners, which will be key assets as we build a leading specialty infrastructure platform together. The acquisition of GCG, an exceptional platform combining strong growth, an attractive margin profile and differentiated capabilities is fully in line with Rexel’s Axelerate 28 strategy, which aims at shaping our portfolio towards more growth and more value-added, and is a significant step in the direction of achieving our mid-term objectives.”
The transaction is fully aligned with Rexel’s Axelerate 28 strategy and respects all of the Group’s financial M&A criteria, including EPS accretion in year one and value creation by year three. Rexel’s Board of Directors has unanimously approved the acquisition.
To finance the transaction while preserving its balance sheet and credit rating, Rexel plans to use a mix of existing cash on hand and approximately €800 million in debt, and intends to raise up to €500 million in equity through an accelerated bookbuilding offering, subject to market conditions. The Group expects to maintain a net financial debt-to-EBITDAaL ratio of around 2x from 2027 onwards, and will continue to pursue a balanced capital allocation strategy that combines a consistent dividend policy of at least 40% payout with a self-funded, value-creative acquisition strategy. The transaction is expected to close by the end of 2026, subject to customary regulatory approvals and closing conditions.
Rexel is a leading global distributor of electrical products, services, and solutions for the industrial, commercial, and residential markets, operating across a 17-country network. The company works closely with world-class partners to drive innovation, support the ongoing electrification of the economy, and serve customers across its core geographies.
Guggenheim Securities and Rothschild & Co served as financial advisors to Rexel in connection with the transaction, with Sidley Austin LLP serving as legal advisor. Solomon Partners and J.P. Morgan served as financial advisors to GCG, with Kirkland & Ellis and Fredrikson & Byron serving as legal counsel.
The acquisition of GCG underscores Rexel’s commitment to strategic growth and its efforts to strengthen its position as a leading specialty infrastructure platform at the heart of the electrification mega-trends reshaping the global economy, while delivering value-added solutions and differentiated capabilities to customers across critical infrastructure markets in the United States. Rexel acquired DEE Electronics earlier this year.
