Rexel expands US presence with acquisition of Talley

Business handshaking in agreement background Image by rawpixel.com on Freepik

Rexel has reached an agreement to acquire Talley reinforcing its exposure to the fast-growing data usage trends. Talley provides network infrastructure products to mobile network operators, network installers, infrastructure operators and end-users across the US. Established in 1983 by the Talley family and headquartered in Los Angeles, Talley will generate turnover of US$360m in 2024 and operates with the support of 11 warehouses and 300+ employees.

This acquisition complements Rexel’s US$700m sales in the datacom and datacentre spaces in North America. It enhances the group’s offer with both connected and electrified solutions to further benefit from the electrification trend of wireless connectivity and digitalisation. It also provides access to high-growth verticals including in-building wireless, private LTE or enterprise networks as well as ongoing network coverage densification and future upgrades.

Talley’s combination with Rexel opens multiple opportunities for further development as well as efficiency improvement, to the benefit of Talley and Rexel’s customers. The transaction is projected to be accretive to Rexel’s earnings per share in year 1, value-creating in year 2 and to represent a fully synergiased multiple of ~7x EBITDA.

“The acquisition of Talley is an important step to continue to strengthen our presence in the US. Electrical solutions and datacom solutions are increasingly interconnected, and Talley’s acquisition will represent a step change, giving us access to expertise, solutions, suppliers and customers in the datacom space. This new transaction is fully in line with our strategy of reinforcing our exposure to faster growing trends and verticals and increasing our weight in North American markets. Talley has an excellent reputation and market recognition for its value-added services, and shares Rexel’s customer-centric values. We are very excited about the opportunities created by the association of the two companies and look forward to working with Talley’s talented teams and management to continue driving profitable growth.” Guillaume Texier, the CEO of Rexel.

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