The managing director Jens Andersen was very satisfied with the result of last year....
The managing director Jens Andersen was very satisfied with the result of last year. Solar A / S from Vejen with over 2,900 employees is one of the most important wholesalers in the Scandinavian area and achieved a total turnover of DKK 11,465 million (EUR 1.5 million) in 2020 and thus only a slight decrease of 1.8%. However, profit (EBITA) far exceeded expectations, from 360 (48) to DKK 455 million (EUR 61 million), an increase of 26%.
Last year a new strategy was introduced called Core +. The new strategy focuses on the solid company foundation and the 4 core areas: Concepts, Climate & Energy, Industry and Trade. Here Solar sees great opportunities for profitable growth in the coming years 2021 to 2023.
Rexel achieved sales of EUR 3,389 million in the 4th quarter of 2020; this is 3.7% less than 12 months earlier....
Rexel achieved sales of EUR 3,389 million in the 4th quarter of 2020; this is 3.7% less than 12 months earlier.
In Europe, quarterly sales were EUR 1,958.2 million, up 3.4%. As always, France was at the top with EUR 768.9 million, Scandinavia with EUR 265.0 million, Germany EUR 181.8 million, UK with EUR 155.4 million, other countries EUR 587.1 million.
In North America it was EUR 1,105.3 million and in the Asia-Pacific region EUR 325.5 million.
In the whole of 2020, sales were EUR 12,592.5 million, minus 8.4% compared to the previous year. The net result was a minus of EUR 261.3 million.
Despite the restrictions in many countries, sales growth of 5-7% is expected for 2021.
The Dutch wholesale groups itsme and Oosterberg have merged and founded a joint venture under the name of itsoos...
The Dutch wholesale groups itsme and Oosterberg have merged and founded a joint venture under the name of itsoos, which focuses on investments abroad. On February 3rd, the first step followed with the takeover of the German electrical wholesaler Hardy Schmitz. Schmitz belongs to the DEHA marketing group.
itsme achieved annual sales of EUR 235 million in 2020 and has 475 employees in 17 branches in Belgium, Germany, the Netherlands, Romania and Spain. Itsme is part of the international marketing group IDEE.
Oosterberg is currently only active in the Netherlands, has 20 branches and had a turnover of EUR 215 million in 2020.
Hardy Schmitz belongs to the DEHA marketing group, has six branches and expects annual sales of around EUR 150 million. The DEHA Group is a member of IDEE, to which itsme also belongs.
Well-known electrical wholesalers such as Bürkle, Löffelhardt, Obeta and Zajadacz are also members of DEHA.
In the context of the takeover, the interesting question is why none of the aforementioned companies wanted or could take over Hardy Schmitz.
Rexel announced on 2nd February that it had acquired WESCO International's Canadian subsidiary (WESCO Canada Utility)...
Rexel announced on 2nd February that it had acquired WESCO International's Canadian subsidiary (WESCO Canada Utility). WESCO had merged with Anixter in June 2020 and in this context agreed with the Canadian competition authority that they would sell their Canadian sales company in return. The net proceeds of this deal would be used to repay WESCO's debt.
WESCO Canada operates in an environment where hydropower accounts for more than 60% of electricity generation and more than 2/3 comes from green energy. The company operates four offices in Canada with around 60 employees and sales of over USD 70 million (EUR 58 million).
This is a unique opportunity for Rexel to accelerate its development in Canada in the attractive and environmentally friendly hydropower business and to benefit from the recurring service revenues.
With this takeover, Rexel also wants to prove that it has repositioned itself in the recent past and is ready again to take up its acquisition strategy and take over companies that complement its own activities and product range in order to increase the company's value.
The health consequences of the corona pandemic shaped the last year and thus also the economy and social life. Now that a vaccine is available, it is important that the number of new infections is sustainably reduced so that the recovery, which has already started in some cases, is not slowed down. At many companies, the order books are full again, almost as they were before the pandemic....
The health consequences of the corona pandemic shaped the last year and thus also the economy and social life - not only in one country but worldwide. Now that a vaccine is available, it is important that the number of new infections is sustainably reduced so that the recovery, which has already started in some cases, is not slowed down. At many companies, the order books are full again, almost as they were before the pandemic. Even industries such as tourism, hotels and restaurants see light at the end of the tunnel, and the discussion has already started whether "vaccinated" people should receive some kind of bonus over "non-vaccinated" people.
One thing is for sure; however, the world has changed dramatically as a result of Corona and will continue to change. Compulsory presence in the office, and intensive travel activities, especially abroad, are a thing of the past. The whole thing will be replaced by video conferences, webinars, digitally held meetings and press meetings. Catalogs and brochures are already available at many companies in the electrical industry, only online and no longer in print, and this means considerable cost savings.
As we wrote on December 3rd, 2020, the weak second quarter was followed by a surprisingly good third quarter with, as we now know, a more or less conciliatory end to the fourth quarter. Due to the availability of the corona vaccine, the recovery in the electrical sector could continue from the middle of the current year. Whereby there will be significant differences between domestic and foreign sales. Only from 2022 will the figures then show some consistency again, without probably reaching the level of the pre-pandemic years.
China: Has risen to become a superpower in recent years and everything is approached strategically and in 5-year plans. The project "Made in China 2025" leads directly to 2049, when the aim is to be the world's leading industrial nation on the centenary of the Communist Party. It is the goal of the communist leadership to become the No.1in the world and gigantic sums of money are being made available for this.
Just think of the “New Silk Road” project or, in Germany, the takeover of Kuka by the Chinese investor Midea in 2016, or Osram / Ledvance in 2015/2016.
It is the goal and the strategy of the Chinese investors to acquire specialist knowledge and innovative technologies (patents and know-how) in Europe and the U.S., for which they then lure "with the huge market that is now available to you". Small and medium-sized enterprises (SMEs) in particular are now on the shopping list, and they are now happy about the additional turnover (“We are now also in China”) and hardly realize that they are giving up their independence, whereby in the opposite case a complete takeover of a Chinese manufacturer by a foreign company is not possible at all.
And the investments affect not only Europe and the USA but also Africa. Among other things, they want to secure the huge reserves of raw materials there; and at the same time also trade, using the knowledge and components that were previously acquired in Europe or the USA, for example.
Africa: Not to be forgotten is the Pan-African Free Trade Area (AfCFTA) with 54 member states and 1.3 billion people, which came into force on January 1, 2021, due to Corona six months later than originally planned. The aim is to have tariffs and trade restrictions removed from virtually all goods and services, but there is still a long and arduous road to go. But forward-thinking companies could also benefit from one of the largest free trade zones in the world.
United States of America: As we regularly report in our industry news at electro-insider, large companies such as Eaton or Honeywell are in the process of expanding their sphere of activity.
The purchasing and marketing associations are working on taking over groups that strengthen the association as a whole with new services, e.g. sanitary or safety products, and give the new distributors a new home, e.g. AD in Wayne / PA
Traditional wholesalers like Wesco, Home Depot or City Electric Supply, continue to grow, with CES better known in Europe as City Electrical Factors (CEF) from the United Kingdom.
Much will of course depend on the newly elected President, Joe Biden, as to how he can now unite the country, even after the most recent incidents, e.g. the storming of the Capitol in Washington.
In one of the next issues, we will also talk about Europe, about India and the online trade, which is becoming more and more important, and thus represents a serious threat to the retail trade.
We are also open over Christmas. In addition, you pick up a special bonus of 10%.
Make yourself the best gift by addressing your customers in a targeted manner.
We are also open over Christmas, which means for you, if you order our Europe or Russia wholesale survey after receiving this newsletter; you will get it before Christmas, which means you can start your planned sales activities with the international electrical wholesale trade in 26 countries (!) straight away in the New Year. In addition, you pick up a special bonus of 10%.
Make yourself the best gift by addressing your customers in a targeted manner.
Eaton buys Chinese manufacturer...
Eaton buys Chinese manufacturer
Eaton will acquire 50% of the Chinese HuanYu High Tech. HuanYu High Tech (sales in 2019 106 m USD = 87 m EUR) is a subsidiary of the HuanYu Group, one of the leading manufacturers of low-voltage circuit breakers in China, with contacts throughout Asia and the entire Pacific region.
This partnership gives Eaton (sales in 2019 21.4 bn USD = 17.6 bn EUR) access to the broader Southeast-Asian market and allows it to expand its business in Asia even further.
The transaction is expected to close in the 2nd quarter of 2021, by then all official closing conditions have been implemented.
The HuanYu Group is a leading Chinese manufacturer of electrical appliances. The company was founded in 1989 and has its headquarters and manufacturing facilities in Wenzhou. The main sectors served are renewable energies, communication, chemistry, medical, transport, i.a.
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DKC takes over Sati
The Russian electrical appliances and cable tray manufacturer DKC will be investing in the Italian metal cable tray manufacturer Sati Italia from Rivoli (TO) from 1st January 2021.
The entry via Sati into the Italian market and possibly other European markets (?) is part of the expansion strategy of the DKC group, which is the leader in Russia with cable carrying systems for electrical wholesalers.
Ahlsell takes over the Vent Group Nordic AB
Ahlsell has signed an agreement to acquire Vent Group Nordic AB. The company generates annual sales of around SEK 135 million (EUR 13.2 million), which means that Ahlsell is expanding its range with products from leading suppliers in the ventilation industry.
The Vent Group's activities are carried out from branches in Stockholm, Gothenburg and Malmö and significantly strengthen Ahlsell's ventilation range on the market.
The acquisition is expected to be completed in January 2021.
Ahlsell recently had sales of approx. 32 bn SEK (3.1 bn EUR) and employs more than 5,700 people in over 240 branches.
Rexel announced better than expected results for 2020;...
Rexel announced better than expected results for 2020; this also made it possible to repay the 2024 bond early. By investing in the last three years, Rexel has been able to further improve its customer service, mainly in terms of staff, branches and further digitalization.
During the second wave of the Corona crisis, Rexel was particularly satisfied with the better than expected business activity.
For the next year, they want to resume dividend payments.
With the prospect of a vaccine against Covid-19, the company looks forward to the press conference on February 11, 2021, where not only the annual report for 2020 will be presented, but also the strategic direction for the next few years.