Rexel buys two Brazilian distributors

Rexel International acquired Brazil's Delamano and Etil, adding €100 million ($130.7 million) in sales. It's not the company's first acquisition in Brazil. In Jan. 2011, Rexel aquired Nortel Suprimentos Industriais, a large industrial distributror that does approximately €120 million ($156.9 million) sales. According to a press release announcing the acquisitions, Rexel is now the largest electrical distributor in Brazil and tops in São Paulo, Brazil's richest and the most populous state. São Paulo accounts for one-third of Brazil's GDP and 22% of the nation's population.

"Brazil is one of Rexel's key priorities in its external growth strategy, which aims notably at expanding the Group's presence in emerging countries,” said the press release. “The size of Brazil's domestic market, its wealth in raw materials and its growth rate, combined with the opportunities linked to hosting major international events such as the Soccer World Cup in 2014 and the Olympic Games in 2016, offer strong growth prospects for the coming years.”

Based in Santo André, in the state of São Paulo, Delamano has distributed electrical supplies for 35 years and got into the MRO business several years ago. Through three distribution centers based in Santo André, Campinas and Vitoria and seven branches inside customers' facilities, the company posted sales of €60 million ($78.4 million) in 2011 and employed over 220 people.

Based in São Paulo since 1986, Etil is one of the major distributors of electrical supplies in the state of São Paulo with a strong focus on the real estate sector (business offices, hotels and restaurants). With one central branch and distribution center and theeadditional branches, the company posted sales of €40 million ($52.8 million) in 2011 and employed over 200 people. Details

Last week, Rexel purchased the Canadian distributor Liteco. Details