Rexel entered into a definitive agreement to acquire GCG, a U.S. specialty infrastructure distribution company, from Audax Private Equity for an enterprise value of approximately $1.4 billion. The transaction marks Rexel's largest acquisition since its $2.1 billion purchase of Gexpro Services in 2021 and positions the Paris-based electrical distributor deeper into the North American infrastructure layer at a moment when hyperscale data center construction is running ahead of copper and power distribution supply chains.
GCG operates in the specialty infrastructure distribution segment, a category that includes above-ground utility components, telecommunications hardware, and grid modernization materials. The company's revenue base sits somewhere between $800 million and $1 billion annually, implying Rexel is paying between 1.4x and 1.75x revenue depending on the exact trailing twelve-month figure. Audax held GCG for approximately four years, a standard hold period for a middle-market private equity firm running a 2019 or 2020 vintage fund. The sale delivers a clean exit at a moment when infrastructure distribution multiples are running above their ten-year averages due to electrification spending and utility modernization budgets that have yet to compress.
The acquisition matters because it accelerates Rexel's exposure to non-residential construction and utility-grade distribution at a time when residential electrical demand is plateauing in mature markets. U.S. data center construction alone is expected to require $50 billion in electrical infrastructure spending through 2026, and GCG's specialty product mix maps directly to that demand. Rexel already generates roughly 38% of its revenue in North America, but the majority of that comes from commercial and industrial MRO channels. GCG shifts the mix toward infrastructure projects with longer contract visibility and higher gross margins than commodity electrical distribution. The deal also removes a competitor from the field at a time when consolidation in specialty distribution is being driven by the need for national footprint and vendor financing scale.
Allocators should watch for Rexel's integration execution over the next six to nine months, specifically whether the company can retain GCG's key supplier relationships and avoid customer churn during the transition. The transaction is expected to close in the second quarter of 2025, subject to regulatory approvals. Audax will likely redeploy proceeds into its current Fund VI, which closed at $3.5 billion in 2022 and is still in its deployment phase. Follow-on M&A activity in the electrical and utility distribution space should accelerate through mid-2025 as private equity firms holding similar assets from 2019 and 2020 vintage funds look to capture elevated exit multiples before the next rate cycle.
Rexel's equity traded up 2.8% in Paris on the announcement, suggesting the market views the valuation as disciplined relative to the growth profile. The company is financing the deal with a combination of cash and debt, and management indicated leverage will remain within its stated range of 2.0x to 2.5x net debt to EBITDA post-close.