Rexel to buy US infrastructure specialist GCG for $1.4B
What's the deal? RexelDealroom has a profile for this one. Try Dealroom → has agreed to acquire GCGDealroom has a profile for this one. Try Dealroom →, a US provider of specialty wire, cable, connectivity, power, and engineered solutions for critical infrastructure, from Audax Private EquityDealroom has a profile for this one. Try Dealroom →. The transaction values Chicago-based GCG at an enterprise value of roughly $1.4 billion.
Who is GCG? It operates 16 locations with about 950 employees and combines specialty distribution with services such as engineering, custom assembly, testing, and rapid fulfilment. More than 75% of its revenue incorporates value-added products or services.
The financials: GCG expects to top $1.1 billion in revenue in 2026 and reach an EBITA margin of about 11%. It has delivered double-digit annual revenue growth since 2019.
What's the endgame? The deal aims to place Rexel at the centre of electrification trends, with over 60% of GCG's revenue tied to high-growth segments including data centres, power and utilities infrastructure, grid modernisation, communications, and defence. Rexel expects cost synergies through scale, logistics, and insourcing, plus cross-selling GCG's engineered solutions to its broader customer base.
The terms: The price implies a multiple below 8x 2026 estimated EBITDAaL, including run-rate synergies. Rexel expects the deal to be earnings accretive in year one and value-creating by year three, with its board approving it unanimously.
How it's funded: Rexel will use existing cash and about €800 million of debt, and plans to raise up to €500 million in equity via an accelerated bookbuilding offering. It aims to keep net debt to EBITDAaL around 2x from 2027 and maintain a dividend payout of at least 40%.
Why now? Rising electricity demand, artificial intelligence, and growing technical complexity are driving sustained infrastructure investment, the segments where GCG generates most of its sales. The transaction is expected to close by year-end 2026, subject to regulatory approvals.
The signal: The purchase deepens Rexel's push into value-added distribution in its core US market, betting that specialty infrastructure — not commodity supply — is where growth and margins now sit.
Read more: rexel.com
