Rexel expands US presence with acquisition of Talley | VanillaPlus

Business handshake in contract backgroundBusiness handshake in contract background Photo: on Freepik

Rexel reached an agreement on the acquisition Talley strengthening your exposure to rapidly growing trends in data usage. Talley provides network infrastructure products to mobile network operators, network installers, infrastructure operators and end users throughout the United States. Founded in 1983 by the Los Angeles-based Talley family, Talley will generate sales of $360 million in 2024 and operates with 11 warehouses and more than 300 employees.

This acquisition complements Rexel’s $700 million sale of its data communications and data center businesses in North America. It expands the group’s offering to include both connected and electrified solutions to further benefit from the trend of wireless electrification and digitalization. It also provides access to rapidly growing industries including indoor wireless networks, private LTE networks or enterprise networks, as well as continuous network coverage densification and future upgrades.

The combination of Talley and Rexel opens up many opportunities for further development and improved performance, to the benefit of Talley and Rexel customers. The transaction is expected to be accretive to Rexel’s earnings per share in the first year, create value in the second year and represent a fully synergistic multiple of ~7x EBITDA.

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

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