News | August 2, 2000

Hagemeyer acquires electrical distribution group in Australia

The company purchases its third electrical distributor in the recent two months.

Hagemeyer N.V. (Naarden, The Netherlands) reached agreement on the acquisition of Pacific Dunlop's Electrical Group in Australia. With annualized sales of AUD$ 800 million (EUR 508 million), the Electrical Group (TEG) is Australia's largest electrical distributor with a market share of 29%, operating under the names of Lawrence & Hanson and Auslec.

TEG is headquartered in Melbourne and is active in the distribution of electrical materials to a wide customer base of electrical contractors and industrial customers. The company sources electrical materials such as

  • cable and accessories
  • switchgear
  • lamps and lighting products
    from a large number of leading suppliers. In particular, the industrial segment offers healthy growth opportunities driven by an industry trend towards outsourcing. TEG has an outstanding management team, who will remain with the company. TEG will be part of Hagemeyer Asia-Pacific run out of Sydney and will leverage off the expertise of Hagemeyer's existing European and North American electrical distribution activities. TEG has an extensive branch network and 1,800 employees across the region.

    The purchase price of AUD$ 343 million (EUR 218 million), which is subject to balance sheet adjustment, represents approximately 42% of sales and an EBITDA multiple of less than 9 times, based on pro forma 2000 results. The acquisition is in line with Hagemeyer's earlier announced strategy to expand its business to business distribution of product and service activities into growth markets. TEG will be used as a platform for further expansion throughout the Asia-Pacific region.

    For more information on recent acquisitions, please click-on the following:

    Hagemeyer to Strengthen UK Electrical Products Distribution With Acquisition of WF Electrical PLC

    Hagemeyer to acquire Cameron & Barkley

    Edited by Jerry R. Borland, P.E.
    Managing Editor, EC Online