Rexel to Buy GCG for $1.4B, Raises €500M Equity

Rexel (Euronext Paris: RXL) announced on 25 September 2026 that it has agreed to acquire GCG, a Chicago-based specialty wire, cable, connectivity and power solutions provider, from Audax Private Equity. The transaction carries an enterprise value of approximately $1.4 billion, equivalent to under 8x 2026 estimated EBITDAaL including run-rate synergies. Rexel expects GCG to generate more than $1.1 billion of revenue in 2026. The deal was approved unanimously by Rexel's board and is expected to close by year-end 2026, subject to regulatory approvals.

Context — why this acquisition matters now

GCG gives Rexel a materially larger footprint in the segments driving electrical infrastructure demand. The company said more than 60% of GCG's revenue is exposed to high-growth markets including data centers, power and utilities infrastructure, grid modernization, communications and defense. This positions Rexel at the intersection of artificial intelligence buildout, rising electricity demand and increasing technical complexity — three forces the company identified as reshaping global electrification investment.

GCG's growth record underpins the strategic logic. Since 2019, the company has delivered double-digit annual revenue growth, and Rexel expects a roughly 11% EBITA margin in 2026. That margin profile reflects proprietary products, engineering capabilities and an operating model where more than 75% of revenue incorporates value-added products or services. GCG employs approximately 950 people across 16 locations and combines specialty distribution with engineering, custom assembly, kitting, testing and rapid fulfillment.

The acquisition aligns with Rexel's Axelerate 28 strategy, which targets portfolio shifts toward higher-growth, higher-value-added activities. Rexel said the deal provides an accelerated path to its mid-term financial objectives and is a strong driver of the group's accelerated sales growth. The company also expects commercial opportunities from bringing GCG's engineered solutions to Rexel's broader customer base.

Rexel's existing scale gives the deal context. The group operates 1,876 branches in 17 countries with 26,306 employees, generating €19.4 billion of sales in 2025. GCG's $1.1 billion revenue adds a meaningful specialty platform to a business whose core is multichannel electrical distribution across residential, non-residential and industrial markets.

Data — what the numbers show

Metric	Figure
GCG enterprise value	~$1.4 billion
2026e EBITDAaL multiple	Under 8x, including run-rate synergies
GCG 2026e revenue	Over $1.1 billion
GCG 2026e EBITA margin	~11%
Employees	~950
Locations	16
Revenue with value-added content	Over 75%
Revenue in high-growth segments	Over 60%
Equity raise	Up to €500 million
Debt funding	~€800 million
Rexel 2025 sales	€19.4 billion
Rexel branches / employees	1,876 / 26,306

Rexel plans to fund the acquisition through a mix of existing cash on hand and approximately €800 million of debt. The group also intends to raise up to €500 million of equity through an accelerated bookbuilding offering, subject to market conditions. Rexel said the equity component is designed to preserve its credit rating and maintain balance-sheet flexibility, with a commitment to an indebtedness ratio of around 2x net financial debt to EBITDAaL from 2027 onwards.

The transaction respects all of Rexel's stated M&A financial criteria, including EPS accretion in year one and value creation by year three. The company said it will maintain a balanced capital allocation strategy between a dividend policy of at least 40% payout and self-funded acquisitions.

Analysis — what it means for markets and sectors

Rexel's move extends a pattern of electrical distributors buying into higher-margin, specification-led niches rather than pure volume distribution. GCG's upstream participation in product design and specification lets it embed with customers earlier in project cycles, which supports pricing power and repeat demand. For Rexel, the deal adds exposure to data center, grid and defense spending — capital cycles less correlated with residential construction, the group's historically cyclical end-market.

The equity raise is the element most likely to draw scrutiny. A €500 million issuance against a $1.4 billion enterprise value is sizeable relative to the acquired asset, and the accelerated bookbuild structure means pricing will reflect near-term market conditions. Rexel framed the raise as a rating-preservation measure, not a funding necessity, which signals management's priority is the balance sheet rather than minimizing dilution.

overlap execution is the key variable. Rexel identified scale, logistics optimization, insourcing and select efficiencies as cost overlap sources, plus commercial cross-selling opportunities. The sub-8x multiple depends on run-rate synergies materializing; without them, the headline multiple would be higher. Investors should track whether Rexel discloses overlap targets or integration costs at a later date — the company did not disclose these in the announcement.

Audax Private Equity, the seller, manages approximately $20.1 billion of assets as of July 2026 and has invested in more than 180 platforms since 1999. Guggenheim Securities and Rothschild & Co advised Rexel, with Sidley Austin as legal counsel. Solomon Partners and J.P. Morgan advised GCG, with Kirkland & Ellis and Fredrikson & Byron as legal counsel.

Outlook — what to watch next

Rexel will host an analyst and investor call at 6:15pm CET on 25 September 2026, with presentation materials available on the company's website ahead of the call. That call is the next scheduled opportunity for management to detail overlap expectations, integration timelines and the equity raise structure.

The accelerated bookbuilding offering for up to €500 million is subject to market conditions and represents the nearest-term capital markets event. Pricing and demand for that raise will indicate institutional appetite for the transaction's dilution profile.

Regulatory approvals remain the primary closing condition. Rexel expects completion by year-end 2026. Watch for any disclosure of overlap targets or restructuring costs, which the announcement did not quantify, and for the pro-forma use trajectory toward the company's stated 2x indebtedness ratio from 2027.

Frequently Asked Questions

What does Rexel's acquisition of GCG mean for retail investors?

For holders of Rexel shares, the deal's near-term effect is dilution from the equity raise and, per the company, EPS accretion in year one. Rexel said the acquisition meets all its financial criteria, including value creation by year three. The company also reaffirmed a dividend policy of at least 40% payout, which matters for income-focused investors. The equity raise size and pricing have not yet been set.

Why is Rexel raising €500 million in equity for this deal?

Rexel said the equity raise, combined with existing cash and about €800 million of debt, is intended to preserve its credit rating and balance-sheet flexibility. The company committed to an indebtedness ratio of around 2x from 2027 onwards. The raise is being conducted through an accelerated bookbuilding offering and remains subject to market conditions, meaning final size and pricing are not guaranteed.

What is GCG and why did Rexel buy it?

GCG is a Chicago-headquartered provider of specialty wire, cable, connectivity, power and engineered solutions for critical infrastructure. It operates 16 locations with roughly 950 employees and is expected to exceed $1.1 billion in 2026 revenue. Rexel cited GCG's exposure to high-growth segments, proprietary products, engineering capabilities and an approximately 11% expected 2026 EBITA margin as the strategic rationale.

Bottom Line

Rexel is buying GCG at under 8x 2026e EBITDAaL, funding a third of the $1.4 billion price with equity to protect its credit rating.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.