Rexel (RXL) investor relations material

Deal rationale and strategic fit

• Agreement with Audax Private Equity to acquire GCG, a U.S. specialty infrastructure platform adding $1.1bn in sales; fourth acquisition of the year and largest in a long time.

• North America expected to exceed 50% of sales after closing, versus 35% in 2021; the region is more profitable than the average.

• More than 60% of GCG turnover is in high-growth markets; revenue mix includes data centers 21%, power and utilities 18%, defense 11% and telecom 10%.

• ~75% of sales include value-added components; engineering, custom assemblies and product preparation support a solutions-provider model.

• Aligns with the strategy of growing in faster-growing, higher-value infrastructure markets and core geographies.

Financial terms and conditions

• Enterprise value of $1.4bn (~€1.3bn); purchase multiple below 8x 2026e EBITDAAL after run-rate synergies.

• Funding combines cash, approximately €800m of debt and an equity raise of up to €500m via accelerated bookbuilding, subject to market conditions.

• Debt financing fully underwritten; two-year financing bridge expected to be refinanced with future bonds.

• Expected accretive from year one, including EPS and EBITDA margin accretion of more than 20 bps; ROCE expected above ~9% WACC by year three.

• Net debt/EBITDAaL targeted at ~2x from 2027; dividend payout policy of at least 40% retained.

Synergies and expected cost savings

• Cost synergies described as high relative to sales, with no amount disclosed; actions include logistics, purchasing, back-office and real-estate optimization, digital and AI tools, and insourcing.

• Cross-selling opportunities across GCG and existing customer bases were excluded from valuation and business-plan calculations.