mynth
10/2021

MAYER acquired by REXEL

UNITED STATES Industrial Services / Industrial & Technical Distribution EV 300M - 700M USD

Context

Rexel entered into a definitive agreement to acquire Mayer in a strategic move to significantly enhance its presence in the United States. The transaction is a key component of Rexel's growth strategy, which prioritizes strengthening its footprint in the North American market, the world's largest for electrical distribution. The acquisition was presented as being fully aligned with the objectives announced during Rexel's Capital Markets Day, signaling a return to bolt-on acquisitions in core markets. The combination is considered highly synergistic from a geographic perspective. Mayer's established network across the Southeast and Mid-Atlantic regions, including several high-growth states, is highly complementary to Rexel's existing operations, which is expected to enable a smooth integration process. For Rexel, the deal expands its market share and strengthens relationships with key suppliers in the region. For Mayer, becoming part of the Rexel group is expected to provide access to a broader suite of digital tools and platforms, designed to accelerate its digital sales capabilities, develop new service offerings, and improve overall operational efficiency. The acquisition was structured to be accretive to Rexel's earnings per share from the first year and value-creative from the second year forward, driven by anticipated synergies.

MAYER, which reported an EBITDA margin of LOGIN in 2021, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the Business Services sector (11.1x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Mayer is a prominent American distributor of electrical products, services, and solutions. Founded in 1930 and headquartered in Birmingham, Alabama, the company has established itself as a significant player in the electrical supply industry, particularly in the eastern United States. For decades, it was a family-owned enterprise held by the Collat family, fostering a culture centered on customer service and deep industry relationships. The company's business model is focused on serving a diverse clientele, primarily within the commercial and industrial end-markets. It acts as a critical intermediary, supplying electrical contractors, industrial facilities, and commercial businesses with a comprehensive portfolio of products needed for construction, renovation, and maintenance projects. As of late 2021, Mayer's operational infrastructure consisted of 68 branch locations spread across 12 states, with a particularly strong presence in Alabama, Florida, Georgia, and Pennsylvania. The company's workforce numbered approximately 1,200 employees. Its long-standing reputation is built on reliability, extensive product availability, and providing technical support to its customers, making it a key partner in the regional electrical supply chain.

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Historical Financials (USD)

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REFERENCES

Valuation range: EV 300M - 700M USD

Revenue range: 750M - 1.3b USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of MAYER by REXEL are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Target: mayer

Acquirer: rexel