Rexel Buys GCG for US$1.4B to Wire Up the US Data Center Boom

Rexel, the Paris-based electrical products distributor led by Chief Executive Officer Guillaume Texier, agreed on September 25 to buy GCG from Audax Private Equity for an enterprise value of about US$1.4 billion. GCG is a Chicago-based provider of specialty wire, cable, connectivity and power products for critical infrastructure. It expects more than US$1.1 billion in revenue in 2026, has about 950 employees across 16 locations and is run by Chief Executive Officer Glenn Pennycook. The deal is expected to close by the end of 2026, pending regulatory approvals.

Rexel is paying less than 8 times GCG's expected 2026 EBITDAaL, after synergies. It will fund the purchase with cash on hand, about US$0.9 billion (€800 million) in debt and an equity raise of about US$570 million (€500 million), which it launched on September 28 through an accelerated bookbuild. The company expects the deal to add to earnings per share in the first year and plans to bring leverage back to about 2 times net debt to EBITDAaL from 2027, while keeping a dividend payout of at least 40%.

Market Context

GCG is more than a reseller. Over 75% of its revenue includes value-added work such as engineering, custom assembly, kitting and testing, and more than 60% comes from data centers, utilities, grid modernization, communications and defense. It has grown revenue by double digits every year since 2019, when Audax bought it from Genuine Parts Co.'s Electrical Specialties Group, and it completed 12 add-on acquisitions under Audax. Rexel expects an EBITA margin of about 11% in 2026.

The timing follows the money in U.S. construction. Census data showed data center construction reached an annualized US$50.7 billion in April 2026, up 28% from a year earlier and above spending on conventional offices. For Rexel, GCG is its 17th North American deal since 2020 and the largest this year, after buying Revere Electrical Supply in May and DEE Electronics in July. North America already brought in US$10.4 billion of Rexel's revenue in 2025.

The Signal

"The acquisition of GCG is an exciting and major step forward in Rexel's strategy. It significantly expands our addressable market, strengthening our position in key, fast-growing segments." — Guillaume Texier, Chief Executive Officer, Rexel

Regional Relevance

For the United States, the deal shows how the AI and power buildout is changing the supply chain behind it. Data centers and grid upgrades need large volumes of specialty cable delivered fast and often pre-assembled, and distributors that can do that work are becoming strategic assets. A US$1.4 billion price for a mid-sized Chicago distributor signals how much buyers will pay for that exposure.

For France and Europe, Rexel is putting more of its future in the U.S. market, where growth has been stronger than at home. Raising equity to do it shows management wants to protect its balance sheet while making its biggest bet on American infrastructure spending in years.

The Other Side

What if data center spending slows? Most of GCG's appeal depends on demand from hyperscalers and utilities staying high. If AI investment cools or power constraints delay projects, the growth that justifies the price could fade.

Can Rexel deliver the synergies? The sub-8x multiple assumes cost savings from scale, logistics and insourcing. Blending a specialty, services-heavy business into a large distributor without losing the engineering talent and customer focus that drove GCG's growth is not guaranteed.

Will shareholders accept dilution? The equity raise equals roughly 4% of Rexel's shares. Investors are being asked to trust that year-one accretion and a return to 2x leverage by 2027 will make up for it, while other distributors compete for the same infrastructure assets.

Sources & Transparency

• REXEL: Rexel to acquire GCG
• Rexel: Launch of a c. €500 million Capital Increase, without shareholders' preferential subscription right, to partially fund the acquisition of GCG
• Rexel to Acquire GCG in $1.4B Specialty Infrastructure Expansion
• Rexel to Acquire GCG in $1.4 Billion Specialty Distribution Deal
• US Census: Data Center Construction Hits $50.7B Annualized Rate, Surpassing Office Spending