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McNaughton-McKay taking over Reynolds
Posted on Monday, 13 November 2017 14:54
McNaughton-McKay Electric Company has announced the signing of an agreement in principle to pick up the Reynolds Company, a Texas-headquartered wholesaler of electrical supply products.
No financial details of the transaction, which still requires approval from regulatory authorities, as well as the signing of a definitive agreement, have been disclosed.
McNaughton-McKay chief executive Don Slominski said the combination would improve the company’s offering to customers.
Upon closing, which is expected by the end of 2017, the enlarged business will be a top ten electrical distributor employing over 1,300 people at 41 locations throughout the US.
Both companies will continue to operate independently and under their current names.
Reynolds currently has 18 locations throughout Texas and Louisiana and has a history dating back some 30 years.
Its customer base spans the energy, industrial and construction segments.
This is not the first purchase of a merchant wholesaler of electrical apparatus and equipment, wiring supplies and related equipment to have been announced this year.
According to Zephyr, the M&A database published by Bureau van Dijk, 67 deals featuring targets in the industry have been signed off worldwide since the beginning of January.
The most valuable of these was a capital increase as China-headquartered Zhengzhou Shengji Electrical and Mechanical Equipment unveiled a USD 293.00 million private placing of shares to Zhengzhou Coal Mining Machinery and Chizhou Fengsheng Equity Investment Management.
This was followed by a French deal as Parvus Asset Management Europe acquired a 4.0 per cent stake in Paris-headquartered Rexel for USD 212.00 million back in early February.
Other companies in the sector to have been targeted since the beginning of this year include Feilo Malta, Chinese electromechanical wholesaler Ningbo Tuopu Electromachanical Import and Export and Polish energy-saving lighting wholesaler Nemex.
© Zephus Ltd