To achieve its new medium-term ambitions through 2015, earlier this week Rexel SA, Paris, unveiled a company plan named "Energy in Motion," that outlines its goals for profitability, investment in acquisitions, and provides some insight into the key markets on which it will focus over the next few years. To boost organic growth, Rexel will focus on what it sees as three areas with high-potential business -- nergy efficiency, international customers and several specific vertical markets -- the oil, gas and mining industries. The company expects these areas to generate double-digit annual growth on average, contribute additional sales of more than 1 billion euros (approximately US $ 1.2 billion) between 2011 and 2015 and represent about 20% of total sales in 2015.
The release said Rexel will continue to be a leading market consolidator, allocating an annual budget of about €500 million (approximately (US $620 million) on average to support its acquisition strategy. “In particular, sales from fast-growing countries should increase by over 1 billion euros between 2011 and 2015 and should represent more than 10% of total Group sales in 2015,” the press statement said. “Acquisitions should contribute between 3% and 5% of additional annual sales on average between 2011 and 2015.”
Rudy Provoost, chairman of the management board and CEO, said in the release, "With the launch of "Energy in Motion," Rexel is establishing a clear roadmap to drive profitable growth and create value for all stakeholders. By building on its strengths and focusing its resources on the key drivers of value creation, Rexel is poised to enter a new phase of development, combining solid organic growth and targeted acquisitions with continuous improvement of profitability and cash-flow performance. In many ways, "Energy in Motion" provides a platform to reinforce our leadership position and enable ongoing success."
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Jim Lucy Blog
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Jim Lucy has been wandering through the electrical market for more than 30 years, most of the time as an editor for Electrical Wholesaling, Electrical Marketing newsletter and CEE News. During that time he and the editorial team for the publications have won numerous national awards for their coverage of the electrical business. He showed an early interest in electricity, when as a youth he had an idea for a hot dog cooker. Unfortunately, the first crude prototype malfunctioned and the arc nearly blew him out of his parents' basement. Before becoming an editor for Electrical Wholesaling magazine and Electrical Marketing, he earned a BA degree in journalism and a MA in communications from Glassboro State College, Glassboro, NJ., which is formerly best known as the site of the 1967 summit meeting between President Lyndon Johnson and Russian Premier Aleksei Nikolayevich Kosygin, and now best known as the New Jersey state college that changed its name in 1992 to Rowan University because of a generous $100 million donation by N.J. zillionaire industrialist Henry Rowan. Jim is a Brooklyn-born Jersey Guy happily transplanted in the fertile plains of Kansas for the past 20 years.