Sonepar to Acquire Summit Electric in Southwest Splash

Sonepar’s aggressive expansion continues to reach new levels.

The electrical distributor announced Sept. 4 that it is set to acquire Summit Electric Supply in a move that will gain Sonepar 23 branch locations in the U.S. southwest and more than 700 associates.

On MDM’s 2024 Top Electrical/Data/Security Distributors List, Sonepar was No. 2 and Summit was No. 21.

Terms were not disclosed for the deal, which is scheduled to close by the end of September.

Founded in 1977 and headquartered in Albuquerque, NM, Summit serves the Arizona, New Mexico, Texas and Louisiana markets — primarily reaching contractors in the industrial, commercial, energy and marine segments.

Summit’s Marine division is based in New Orleans; its Engineering, Procurement & Construction (EP&C) division is based in Houston; and its International Sales division is also in Houston. 

“Sonepar has a proven track record of supporting market expansion, company culture, operating style and brand identity of the companies they acquire. Coupled with their resources and investments in digital and supply chain as well as career development for our associates, it is clear that Sonepar is the right fit and best positions Summit for continued long-term accelerated growth,” Summit CEO Ed Gerber said in a news release. “I am deeply grateful for our talented associates that made our incredible growth trajectory and success possible over the years. We are thrilled to join the Sonepar family and look forward to what this next chapter will bring.”

The announcement came on the heels of Sonepar’s August acquisition of Council Bluffs, IA-based Echo Electric Supply, which added 23 Midwest branch locations to the Sonepar footprint and over 600 employees.

Premium: A Study of Sonepar’s North American Acquisition Journey (May 2024)

“This acquisition represents the best of both worlds. Not only do we increase our size in Texas, — the second largest electrical market in the U.S. — and Louisiana, but we’re also expanding our presence in adjacent markets in the Southwest,” Sonepar Americas President Rob Taylor said. “Summit Electric Supply has an extensive product offering and specialized knowledge, in addition to a long track record as a trusted partner to contractors and leading electrical equipment suppliers. We look forward to Summit’s associates joining the Sonepar family.”

MDM Analysis

It’s been a huge 2024 for Sonepar in North America. Once this Summit deal is complete, it will have closed some of the gap at the top of our top of MDM’s Electrical/Data/Security Distributors List, which Wesco leads with $22.4 billion in 2023 revenue. Sonepar was a distant second with $15.2 billion, but its acquisition barrage this year positions it within striking range. Its 2024 deals include:

• Summit Electric Supply – will add 23 branches in the U.S. south/southwest and 700+ employees 600
• Echo Electric Supply – added 23 branches in the U.S. plains and upper Midwest and 600+ employees 450
• Robertson Electric (Vaughan, Ontario) – added 19 branches and 400+ employees
• Electric Supply Center (Burlington, MA) – added six branches across Massachusetts and New Hampshire and 130 employees
• Electrozad (Windsor, Ontario) – added four branches across southern Ontario and 100+ employees
• Madison Electric and Standard Electric (Michigan) – which added 36 combined branches; $400 million in 2023 revenue; and 500+ employees

By our count and estimation, these deals have netted Sonepar a combined 111 branches, 2,000+ employees and between $1.6 billion to $2.0 billion in annual revenue, which would push Sonepar north of the $17 billion mark.

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