Key Takeaways
- • Rexel, a Paris-based electrical distributor with €22.7 billion in 2025 sales, is acquiring GCG, a Chicago-based specialty wire and cable distributor, for $1.4 billion enterprise value, representing the company's fourth North American acquisition in 2026.
- • GCG generated projected 2026 revenue of $1.1 billion at an 11% EBITA margin (~$121 million EBITA), valuing the company at approximately 10x–11x standalone EBITDA; Rexel expects sub-8x EBITDA multiples post-synergies.
- • Audax Private Equity realized a seven-year exit after acquiring GCG in 2019 as a carve-out from Genuine Parts' Electrical Specialties Group, completing 12 add-on acquisitions that transformed GCG into a leading specialty infrastructure platform with ~950 employees across 16 North American and European locations.
- • GCG operates in high-growth infrastructure markets—over 60% of revenue derives from data centers, power utilities, grid modernization, communications, and defense—positioning Rexel to capture demand from grid aging (70% of U.S. transmission lines exceed 25 years) and projected 15+ gigawatt data center power deficit by 2030.
- • The transaction is immediately accretive to Rexel's earnings and EBITA margins while substantially elevating the distributor's exposure to higher-value, engineered cable solutions for critical infrastructure; closing is expected by year-end 2026.
Summary
Rexel has agreed to acquire GCG, a specialty wire, cable, and connectivity distributor, for $1.4 billion in enterprise value, marking a strategic expansion into engineered infrastructure solutions and the Paris-based electrical distributor's fourth major North American acquisition in 2026. The purchase represents a significant exit for Boston-based Audax Private Equity, which held GCG for seven years following its September 2019 acquisition as a carve-out from Genuine Parts Company's Electrical Specialties Group.
GCG operates as a value-added distributor providing pre-fabricated, ready-to-install cable assemblies and connectivity solutions for electricians and infrastructure contractors. The company cuts cable to specification, builds custom wiring harnesses, prints and strips components, and kits parts for direct installation—a service model that captures demand from skilled-labor shortages in electrical trades. GCG markets products under six primary brands (AWC Wire, CableMaster, Olympic Wire, Paige, RWL, and United WC) and operates specialized divisions for defense, rail, marine, and manufacturing customers, alongside proprietary engineered solutions including MAXIAMP cable bus systems for high-capacity power distribution in data centers and power plants. More than 60% of GCG's revenue stems from data centers, power and utility infrastructure, grid modernization, communications, and defense—end markets projected to expand 5%–6% annually through 2031.
GCG reported projected 2026 revenue exceeding $1.1 billion at an 11% EBITA margin (~$121 million), positioning the company at a standalone valuation of approximately 10x–11x EBITDA. Rexel, which reported €22.7 billion in 2025 sales and an adjusted 6.2% EBITA margin in the first half of 2026, projects sub-8x EBITDA multiples for GCG post-synergies and expects the acquisition to be immediately accretive to adjusted earnings and EBITA margins. Rexel will fund the acquisition using existing cash, approximately €800 million in debt, and an equity offering of up to €500 million.
Audax executed an aggressive buy-and-build strategy during its ownership, completing 12 acquisitions including Allied Wire and Cable (2021), Paige Electric (2022), RWL Advanced Solutions (2023), and United Wire & Cable (2026). The platform also developed industrial automation capabilities through four acquisitions between 2021 and 2023, which GCG subsequently divested to SunSource in July 2026 to sharpen focus on specialty wire and cable. The sale represents Audax's seventh realization from its flagship fund in 2026, following exits including Colony Hardware, Alliance Ground International, and FDH Aero. Solomon Partners and J.P. Morgan advised GCG and Audax; Guggenheim Securities and Rothschild & Co advised Rexel. The transaction is expected to close by year-end 2026.
GCG operates as a value-added distributor providing pre-fabricated, ready-to-install cable assemblies and connectivity solutions for electricians and infrastructure contractors. The company cuts cable to specification, builds custom wiring harnesses, prints and strips components, and kits parts for direct installation—a service model that captures demand from skilled-labor shortages in electrical trades. GCG markets products under six primary brands (AWC Wire, CableMaster, Olympic Wire, Paige, RWL, and United WC) and operates specialized divisions for defense, rail, marine, and manufacturing customers, alongside proprietary engineered solutions including MAXIAMP cable bus systems for high-capacity power distribution in data centers and power plants. More than 60% of GCG's revenue stems from data centers, power and utility infrastructure, grid modernization, communications, and defense—end markets projected to expand 5%–6% annually through 2031.
GCG reported projected 2026 revenue exceeding $1.1 billion at an 11% EBITA margin (~$121 million), positioning the company at a standalone valuation of approximately 10x–11x EBITDA. Rexel, which reported €22.7 billion in 2025 sales and an adjusted 6.2% EBITA margin in the first half of 2026, projects sub-8x EBITDA multiples for GCG post-synergies and expects the acquisition to be immediately accretive to adjusted earnings and EBITA margins. Rexel will fund the acquisition using existing cash, approximately €800 million in debt, and an equity offering of up to €500 million.
Audax executed an aggressive buy-and-build strategy during its ownership, completing 12 acquisitions including Allied Wire and Cable (2021), Paige Electric (2022), RWL Advanced Solutions (2023), and United Wire & Cable (2026). The platform also developed industrial automation capabilities through four acquisitions between 2021 and 2023, which GCG subsequently divested to SunSource in July 2026 to sharpen focus on specialty wire and cable. The sale represents Audax's seventh realization from its flagship fund in 2026, following exits including Colony Hardware, Alliance Ground International, and FDH Aero. Solomon Partners and J.P. Morgan advised GCG and Audax; Guggenheim Securities and Rothschild & Co advised Rexel. The transaction is expected to close by year-end 2026.
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