Paris, France-based Rexel has agreed to sell its operations in Poland, Slovakia and the Baltics to the Wurth Group. The transaction represents an enterprise value of around €10 million (US$10.9 million) and should generate an estimated loss of around €27 million (US$29.4 million) before tax for Rexel.
With this divestment, which follows the sale of its Latin America operations in 2015, Rexel continues its disposal program aimed at reallocating resources to its most profitable activities. The Poland, Slovakia and Baltics operations had consolidated sales 2015 of €153 million (US$166.8 million).
The company sold its Latin America operations last year to Paris-based Sonepar for an enterprise value of $51 million. Rexel says it has completed about 60 percent of the disposal program announced in February 2015. The operations Rexel divests in the program, once complete, should represent about 5 percent of total group revenue.
