Rexel Acquires GCG to Enhance Specialty Wire and Cable Solutions

Rexel's Bold Move: Acquiring GCG for Future Growth

In a significant development in the specialty wire and cable distribution sector, Rexel, a prominent player in energy management solutions, has announced its acquisition of GCG, a leader in delivering value-added solutions crucial for diverse applications. The deal, estimated to close by year-end 2026, is expected to significantly enhance Rexel's position in high-growth markets, particularly those focusing on mission-critical applications.

Founded on a foundation of engineering excellence, GCG operates through two key segments: Custom Engineered Solutions (CES) and Connectivity Power Solutions (CPS). These segments collectively provide engineered, value-added wire and cable solutions to various sectors, including data centers, power infrastructure, defense, building systems, water, telecom, and industrial markets. Remarkably, GCG has seen its revenue soar to over $1.1 billion since 2019, a testament to its strategic acquisitions and organic growth initiatives.

During the announcement, Glenn Pennycook, the CEO of GCG, expressed excitement about this milestone, noting the significant strength of GCG's business model, culture, and, most importantly, its workforce. He stated, "This acquisition is a clear indication of the value and potential of our operations. Rexel's strategic focus on customers and suppliers assures us that they are the right partner to maintain our growth momentum while cultivating more opportunities for our associates and clients.”

The acquisition not only represents a strategic move for Rexel but also allows GCG to leverage Rexel’s existing platform and extensive network to amplify its growth and service offerings. GCG's strong technical capabilities, alongside its robust relationships with customers and suppliers, are expected to complement Rexel's distribution model, enhancing its capabilities further in the energy management market.

Rexel, which operates across multiple regions with 1,876 branches and a workforce of over 26,000 employees, has maintained a strong presence in the energy products and services market. The company caters to three primary markets: residential, non-residential, and industrial sectors, showcasing a commitment to innovative energy management solutions designed for construction, renovation, and maintenance. The year 2025 marked significant sales figures for Rexel, amounting to €19.4 billion.

In the background of this acquisition, Audax Private Equity, which originally acquired GCG as part of a carveout from Genuine Parts Company's Electrical Specialties Group, played an instrumental role in GCG's journey to success. By partnering with GCG's management, Audax facilitated numerous growth-oriented initiatives, including significant add-on acquisitions, laying the foundation for the strong performance that led to this acquisition. This approach by Audax has reaffirmed their market position as a formidable player concentrated on investments within the North American middle market.

Providing advisory services during the acquisition were Solomon Partners and J.P. Morgan for GCG and Audax, while Guggenheim Securities and Rothschild & Co. advised Rexel. Meanwhile, legal expertise was provided by Kirkland & Ellis, Fredrikson & Byron, and Sidley Austin LLP.

In conclusion, this acquisition marks a transformative chapter in Rexel's expansion strategy and underscores the growing importance of specialty wire and cable solutions in today's industrial and technological landscapes. Both companies are well-positioned to navigate the complexities of the energy management sector, harnessing their combined capabilities to deliver innovative solutions to their customers in the future.

For more information about GCG, visit their official website.