French multinational Rexel acquires Brazil’s Nortel Suprimentos Industriais SA | Invest in Brazil

From Invest in Brazil: French multinational firm Rexel has acquired Brazil’s Nortel Suprimentos Industriais SA, a key player in the distribution of electrical and industrial equipment in Brazil. Rexel is a global leader in the distribution of electrical supplies. The investment enables Rexel gain a significant foothold in the Brazilian market and creates a platform to build a leading position in the country.


Rexel has operations in 34 countries and had 2010 net sales of about US$16.3 billion. Rexel is a leading firm in the distribution of electrical equipment and solutions in the residential, industrial and commercial markets, distributing products such as installation equipment, cables, conduits and lighting.

Nortel Suprimentos Industriais SA is a leader in the Brazilian market for the distribution of electric and safety equipment, tools, industrial panels and industrial automation. The firm has 40 branches in Brazil and had estimated net revenue of US$150 million in 2010. Rexel was advised on the deal by Stratus Group.

Rexel’s Head of M&A, Guillaume Chainer, said Stratus provided invaluable help at every step of the deal, from originating the contacts with the sellers to the closing of the transaction. Stratus has proved to be a trusted advisor especially as Rexel had no presence in Brazil to support the acquisition team, said Chainer.

Brazil is one of Rexel’s key priorities, both because of the size of its domestic market and its growth rate. Brazil’s strong economic potential and wealth in raw materials combined with opportunities linked to hosting the organization of the Soccer World Cup in 2014 and of the Olympic Games in 2016, offer sustained growth prospects for the coming years.

In a market that remains fragmented, Nortel Suprimentos Industriais is one of the top three national players, with a leadership position in the region in which it operates. Nortel is based in Campinas in the state of São Paulo. The company employs around 600 people and operates through 49 branches, mainly located in the South-East region, and 3 distribution centers. In 2010, Nortel Suprimentos Industriais posted sales of €110 million.

With a well-diversified customer portfolio including key industrial clients, a solid base of both international and national suppliers and a strong reputation, Nortel Suprimentos Industriais achieves high profitability. With this acquisition, Rexel gains a significant foothold in the Brazilian market and creates a platform to build a leading position in the country.

 

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About Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Bureau. She is a member of the Brazilian Investment Analysts Association (APIMEC-Rio) where she served as Corporate Relations Director and later, on the board. Hildete advises companies doing business in Brazil. She lives between Paris and Rio and is a member of the Harvard Club of Paris and of the Mercosur Women’s Forum.
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