Rexel doesn't make the parts that power data centers. It just sells them.
That turns out to be a very good place to be right now. The French firm just made its 16th US or Canada deal in five years.
The CEO is telling investors he isn't done.
The Deal
Revere Electrical Supply is based in Mokena, Illinois. It runs 10 branches across Illinois and Wisconsin.
The firm has a 100-year history serving factory clients in the Midwest. It is also a top reseller for Rockwell Automation.
Rockwell is the top name in US factory gear. Revere did about $330 million in sales last year.
That makes it Rexel's second-biggest North American deal since 2020. Rexel says the deal will add to profits right away.
The Revere brand stays. So does the leadership team.
That's how Rexel has been running its US buying streak. Keep the local name and plug into the global supply chain.
We break down deals like this in plain English each morning in Market Briefs. Five minutes, with a 45-minute investing course on the house when you join.
Why The Trade Matters
The US needs more power gear than at any point in modern times. Data centers are getting bigger and using more juice.
Reshored plants are going up across the Sun Belt. Both run on factory gear and wiring.
Rexel is buying its way into the highest-margin slice of that build-out. Firms like Revere sell tech setups, not just basic wire.
That means stickier clients and better margins.
The plan is simple. Find a strong local dealer, pay a fair price, leave it alone, and do it again.
Rexel has spent five years rolling this play out. Each deal adds new clients and new markets to the base.
The firm's US sales have grown each year of the streak. Margins have ticked up too.
Family-run firms like Revere often face owner exit at the same time as new demand. Rexel offers cash and lets the brand keep its name.
The result is a slow-burn roll-up that rivals have a hard time matching.
What To Watch
CEO Guillaume Texier said more US and Canada deals are on the way. The pipeline is most likely other factory-gear firms.
That's where Rexel already has scale. The bigger question is whether anyone tries to buy Rexel itself.
The stock has been the topic of buyout rumors before. Rexel recently said it isn't in any talks.
Watch Rockwell Automation as well. Each dealer like Revere joining a bigger group ties more sales to Rockwell over time.
The Sun Belt build is also worth tracking. New chip plants, EV plants, and data centers all need wiring at scale.
Rexel's footprint there will likely keep growing as those projects break ground. Watch French peers too, since Schneider Electric and Legrand each play in nearby parts of the same trade.
The picks-and-shovels side of the AI build-out doesn't get the headlines. Rexel just made it harder to ignore.
Sign up for Market Briefs for the daily plus a 45-minute investing masterclass free of charge as a bonus.
