Wesco Sells Canadian Utility Distribution Business to Rexel
The deal partially fulfills Wesco’s pledge to divest its Canadian utility and datacom businesses in connection to its merger with Anixter.
PITTSBURGH — Wesco Int’l (NYSE: WCC), based here, announces it has sold its legacy Wesco utility business in Canada to Rexel Canada, a wholly owned subsidiary of France’s Rexel Group. Financial terms of the transaction were not disclosed.
According to company, the transaction “partially fulfills Wesco’s commitment to divest its legacy Canadian Utility and Datacom businesses in connection with its Consent Agreement with the Canadian Competition Bureau related to Wesco s merger with Anixter Int’l, which closed on June 22, 2020.” The company adds that proceeds from the sale will be used to repay debt.
“We are pleased to complete this transaction with Rexel, which satisfies one of the conditions of our agreement with the Canadian Competition Bureau,” states John Engel, chairman, president and CEO of Wesco. “This transaction is a highly successful outcome for Wesco. We will support our associates as they transition to Rexel, and we wish them continued success.”
Engel continues, “Wesco is committed to continuing to serve utility customers in Canada, through the legacy business we acquired with Anixter. I look forward to providing further details about this divestiture, as well as the continued integration of Wesco and Anixter.”
The acquisition of Wesco Canada Utility will provide Rexel with enhanced development opportunities in an attractive and resilient business, according to an announcement. It also allows Rexel to offer a complementary range of products to its existing utility contractor customer base and to further expand its footprint in the country.
Wesco Canada Utility supports public power utility producers and utility contractors in Canada, where hydroelectricity accounts for more than 60% of electricity generation and more than two-thirds comes from green energy. The business operates four branches in Canada with approximately 60 employees and sales over $70M. The range of products (pole line hardware, cable accessories, connectors, and transformers) is largely used for maintenance and upgrade activities.
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