Technology distributor bought in £323m deal
Distrelec has been bought by RS Group in a €365m (£323m) deal that sees the exit of investor Aurelius after three years.
The Manchester-headquartered company distributes electronics, automation and measurement technology products across Europe.
Distrelec was founded in Switzerland 50 years ago and it opened its Manchester office in 2017. Investor Aurelius bought Distrelec in a carve-out from Dätwyler Group in March 2020 and made Manchester the company’s headquarters the following month.
Around 100 of its 400 employees are based at Two St Peter’s Square, with the rest at its 12 sales offices across Europe, distribution centres in Switzerland and the Netherlands, and a shared service centre in Latvia.
RS Group’s chief executive Simon Pryce said: “Distrelec is a complementary business to RS with excellent value creation potential under our ownership.
“It materially strengthens our presence in key European markets, there is a strong cultural and operational fit and there are significant potential soft and hard synergies from the combination.”
RS Group has taken a three-year, €150m acquisition term loan facility to help fund the deal.
Distrelec generated €270m of sales last year, making €34m profits, as measured by EBIT. The acquisition will immediately add around 10% to RS Group’s annual sales.
Matthias Täubl, chief executive of Aurelius Equity Opportunities, added: “Since joining Aurelius in March 2020, Distrelec has first stabilised and then significantly expanded its market position and successfully positioned itself as a well-established, independent participant in the European field of B2B electricals distribution, while preserving its unique heritage.”
Distrelec will become part of RS Group’s EMEA region, with senior members of Distrelec’s management team, including chief operating officer Raj Patel and chief information officer Ben Scholey, moving over as part of the deal.
The acquisition requires German, Austrian and Italian regulatory clearances, and is expected to be completed within two to three months.
