Intrepid Investment Bankers announced today that it served as the exclusive financial advisor to Talley Inc. on its acquisition by Rexel USA, North American subsidiary of Rexel, a worldwide expert in the distribution of electrical products and services. The transaction is expected to close in June.
Talley Inc. – A Pioneering History
Founded in 1983 by John R. and Elizabeth J. Talley, Talley Inc. began operations in Santa Fe Springs, CA focused on serving the needs of wireless communications professionals across a wide range of industries, from local public safety to nationwide cellular, and everything in-between. In the years that followed, John and Elizabeth were joined by their four sons, John, Jeff, Mark, and Rick, who helped grow the business and continue expansion first across the western U.S. and later, nationally. Talley’s expertise in wireless communications left it well positioned to grow alongside the expansion of cellular network infrastructure, which has occurred over the past several decades across the U.S. and which continues to evolve and expand with the advent of new technologies and ever greater consumer demand for data.
Today, Talley is one of the largest independent value-added distributors of wireless infrastructure communications and mobile products, employing over 300 professionals. With 11 facilities nationwide, the company serves blue-chip customers in several industry segments showcasing an extensive inventory sourced from the industry’s top suppliers.
“For over four decades, our mission has been to provide the best service in the industry,” said Mark Talley, CEO of Talley. “Through our three core deliverables, ease of ordering, product availability, and service excellence, we have built a trusted reputation with our customers and suppliers, helping them build the connected world we live in today.”
The Next Chapter
Talley’s partnership with Rexel provides additional resources, expertise, and capabilities to further enhance the company’s impressive, long-term track record of organic growth. The company will continue to focus on exceptional customer service while looking to further expand and strengthen its blue-chip customer and supplier base, drive growth across core market verticals, and enter adjacent product categories.
Mark Talley commented, “We are excited to join Rexel, a leader in the electrical distribution industry. Maintaining the Talley brand and culture, alongside and as a part of the Rexel brand and culture, will create strategic value for our customers, suppliers, communities, and stakeholders. Our combined strengths, offering best-in-class products, services, and solutions, will help our customers and suppliers grow and be successful.”
“To assist us with identifying the right partner, we met with several qualified advisors. After meeting Intrepid, we knew they fit our culture and would work alongside us to find the right partner,” added Mark Talley. “Gary, Mike, and team are pros and we’re thrilled with the outcome for all involved.”
“It was an honor and pleasure working with the Talley family and management in facilitating this partnership. The Talley team has built a truly differentiated leader in wireless communications distribution. We see tremendous opportunities and synergy between these two companies and are excited to see Talley leverage Rexel’s global platform to propel its next phase of growth,” said Gary Rabishaw, Managing Director and Founding Partner at Intrepid.
Rexel’s Entrance into the U.S. Telecommunications Market
Rexel’s strategic acquisition of Talley marks its entry into the growing U.S. telecommunications market and paves the way for establishing a U.S. data communications business unit. Rexel USA intends to operate Talley as a distinct entity, leveraging its well-known brand and talent to develop the U.S. data communications business segment. This acquisition offers numerous benefits, including entering the growing telecom market, gaining access to top-tier data communications suppliers, engaging with several new blue-chip customers, and expanding into high-growth verticals including in-building wireless and private LTE.
Why This Deal Matters
- High-quality asset with the flexibility to meet the needs of customers ranging from regional installers to national telecom companies
- Enables Rexel to establish formal entry into the U.S. telecommunications market, laying the groundwork for a future national datacom segment
- Nationwide footprint helps unlock synergistic cross-selling opportunities for strategic partners
- Distributors with high touch value-added services remain highly sought after and coveted assets
The Bottom Line
Within the competitive wireless communications distribution industry, companies focused on innovative, value-added solutions for customers will continue to differentiate themselves in the M&A market. Selecting the ideal partner that shared Talley’s values and vision, while also preserving Talley’s family and brand legacy, was critical. Intrepid executed a rigorous and disciplined process to identify the right partner for Talley, leading to an outstanding outcome for the Talley family, management team, and the company’s dedicated workforce.