Offshore oil and gas in Southeast Asia is inciting some enthusiasm among global electrical distributors. Particularly among the industry’s two Parisian behemoths. Sonepar and Rexel both made significant acquisitions in the region over the past few weeks.
Sonepar SA, Paris, acquired Oakwell Distribution, the former distribution arm of Oakwell Engineering Ltd., effective Oct. 31. Sonepar said in a press release that Oakwell is a leader in the supply of electrical, mechanical products and services to the oil and gas Industry. The company is headquartered in Singapore and has operations in seven countries in Asia and other oil and gas markets around the world. Sonepar said Oakwell is considered “the leader in its field in Asia” with total annual sales in excess of €105 million (approximately US $142.4 million). Low Beng Tin, Oakwell’s founder and managing director, has joined Sonepar along with 236 employees.
Sonepar said Oakwell’s concept is to be a one-stop provider of engineering and procurement solutions, an approach it said has been quickly accepted by the global oil and gas industry since Oakwell’s founding in 1984. Sonepar also said it has considered Southeast Asia a strategic growth area and has consistently invested there since 2008.
Founded in 1969, Sonepar employs 36,000 associates at 168 entities in 36 countries. Thanks to continuous growth, the company posted sales of €16.3 billion in 2012.
Rexel SA, Paris, meanwhile acquired two distributors to bolsters its business in the oil and gas vertical – Lenn International, in Singapore, and Quality Trading, Bangkok, Thailand. Rexel also acquired Esabora, a French software provider with tools for electrical contractors and other installers.
Lenn International is a wire and cable distributor focused on the offshore oil and gas market with customers across Southeast Asia. Lenn International generated sales of €20 million (approximately US $27 million) in the last fiscal year. Along with enhancing Rexel’s presence in the oil and gas vertical segment, one of its strategic high-growth initiatives, the move will strengthen the company’s branch network in Asia.
Rexel says the acquisition of Thailand-based Quality Trading makes it the #3 player in what it calls “one of the most attractive markets in Asia.” The press release said the five-branch Quality Trading, Bangkok, Thailand, is one of the largest electrical distributors in the fast-growing Thai market and focuses on the OEM, MRO and lighting segments of the industrial and commercial end-markets. Quality Trading generated sales of €35 million euros (approximately US $37.5 million) in the last fiscal year.
Rexel said the Esabora acquisition will provide Rexel’s customer base with innovative solutions to accelerate growth in energy efficiency and building automation. “Esabora complements the 2011 acquisition of Inoveha and will contribute to the creation of a digital platform accelerating Rexel’s transformation from a product distributor to a solution provider,” the release said. Esabora generated sales of about €2 million (approximately US $2.7 million) in the last fiscal year.