RS Group PLC (LSE:RS1) said it bought Risoul, the leading distributor of industrial and automation product and service solutions in Mexico, for US$275mln on a cash-free and debt-free basis.
Risoul also provides onsite product training, control board and panel assembly, air conditioning maintenance, specialist tool repair and a smart network infrastructure service.
“Risoul enables RS to expand our position and execution expertise in the Americas, specifically in Mexico and the rest of Latin America, and drive cross-selling synergies across our product and service solutions offer,” Lindsey Ruth, RS chief executive, said.
The acquisition delivers on the company’s strategy to accelerate organic growth via inorganic opportunities that expand its priorities: geographic expansion, product adjacencies and service solutions.
It also provides RS with an opportunity to leverage its digital expertise.
RS intends to develop Risoul’s digital presence to raise customer reach and offer a larger product range while improving execution capabilities and driving efficiencies.
“As part of RS Group, Risoul will benefit from our digital capabilities and international scale, providing an opportunity to expand beyond its existing strengths, while creating new capabilities,” Ruth added.
The acquisition is expected to be accretive to adjusted earnings per share in the first full year and should exceed its cost of capital within three years, a statement said.
RS will finance the acquisition, which is due to complete by November, from its existing debt facilities but it remains subject to customary closing conditions including Mexican anti-trust.