$2.5 Billion in Electrical Sales Changes Hands in 26 Distributor Acquisitions

It was by any measure a banner year for distributor acquisitions in the electrical market. At press-time, Electrical Marketing had reported on 26 deals. Eleven of them involved the sale of electrical supply houses on Electrical Wholesaling’s 2021 Top 150 Distributors list (see chart below).

But it wasn’t the number of acquisitions that stands out; it’s the amount of sales dollars changing hands. EM’s editors estimate that no less than $2.5 billion in industry sales is now under new ownership. Rexel’s acquisition of Mayer Electric Supply, Birmingham, AL, accounted for approximately $1.1 billion of that amount, but there were at least six other deals that involved distributorships with $100 million-plus in sales. The Mayer acquisition was one of the largest acquisitions in the industry over the past decade, and it dramatically increases Rexel’s presence across the Southeast, Texas and western Pennsylvania.

The deal also ranks as one of Rexel’s largest acquisitions ever. According to EM’s database of distributor acquisitions, Rexel has acquired at least 30 wholesalers in the United States and Canada since the 1980s, including well-known players like Platt Electric Supply, Beaverton, OR (2012); Branch Group, Upper Marlboro, MD (2000); Westburne, St. Laurent, Quebec (2000); GE Supply, Shelton, CT (2006); and Capitol Light & Supply (CLS), Hartford, CT (2006).

Graybar Electric Co., St. Louis, also made headlines with its acquisition of three Top 150 distributors: Metro Electric Supply, St. Louis; Shingle & Gibb Automation, Moorestown, NJ: and Stevens Engineering, South San Francisco, CA. Together, the three companies add an estimated $180 million in revenues to Graybar, which logged approximately $7.2 billion in 2020 sales.

Sonepar USA, North Charleston, SC, also made waves, with its acquisitions of two well-known Midwestern distributors – Springfield Electric Supply, Springfield, IL, and Richard Electric Supply, Cincinnati.

OmniCable, West Chester, PA, surprised the wire and cable world with its purchase of Houston Wire & Cable, Houston, and Consolidated Electrical Distributors, Irving, TX, adding to an already strong position in the Sunbelt with its acquisition of Wildcat Electric Supply, Houston. Another Pennsylvania distributor was in the news this year, with the sale of Rumsey Electric Co., Conshohocken, PA, to Kendall Electric Inc., Portage, MI.

You may want to keep an eye on Genuine Cable Group (GCG), Chicago, a relatively new player on the electrical stage. The company acquired three specialty wire and automation companies this year: Allied Wire & Cable, Collegeville, PA, #69 on EW’s Top 150 ranking; Advanced Controls & Distribution, Cranberry Township, PA; and C&E Advanced Technologies, Miamisburg, OH.

Led by Anixter veteran Steve Maucieri, Genuine Cable Group promotes itself as a value-added distributor of wire, cable and related products to a variety of niche markets in the following segments: telecom/broadband; factory automation; naval and ship building; rail/transit; and building automation. The company also offers custom assembly, cutting and striping services.

Across the border, Guillevin International, Montreal, was also in an acquisitive mode in 2021, acquiring WESCO’s Canadian datacom business and McLoughlan Supplies Ltd., St. John’s Newfoundland.

There were several other acquisitions of note. Supply Chain Equity Partners (SCEP), Tampa, FL, bought the largest independent distributor headquarter in Florida — Electric Supply of Tampa. The company is one of the 100 largest distributors in the United States. This deal was also unique because of SCEP's background. According to Jim Miller, one of the company's partners, SCEP is the only 100% distribution-centric private equity fund in the U.S. SCEP’s investors include more than 40 distribution veterans, including eight former owners of Top 200 electrical wholesalers. ESI is SCEP’s 44th distribution investment since 2007.

Prior to founding SCEP, Miller and the principals of the fund worked in an advisory capacity for some of the biggest electrical wholesalers in the U.S. and abroad, including Warren Electric, Stuart C. Irby, Edson Electric, Leff Electric, Platt Electric, Melexa, Heritage/OneSource, Calvert Wire & Cable, Houston Wire & Cable, Roden Electric and Western Extralite.

Click here to download a copy of Electrical Marketing's database of  more than 500 electrical distributor acquisitions.