Strengthening its position in the Chinese market, Rexel has acquired Suzhou Xidian. Rexel has been investing in China since 2000. The acquisition is Rexel's second in China in the past 12 months.
Suzhou Xidian's 2007 sales were approximately $55.6 million. Its growth rate is higher than the average market growth rate in China. Suzhou has 115 employees and seven branches. Six of the branches are in the Shanghai area and one is in Beijing.
Under the terms of the transaction, subject to approval by relevant authorities, Rexel will hold 73.5 percent of Suzhou Xidian. Rexel will increase its stake in Suzhou Xidian to 100 percent within three years.
The acquisition of Suzhou Xidian follows that of Huazhang Electric Automation in March 2007.
Rexel posted 2007 pro-forma sales of $175.7 million and has 580 employees in China.