RS Group completes acquisition of Distrelec

RS Group plc (LSE: RS1), a global provider of product and service solutions, announced that it has completed the acquisition of Distrelec B.V. (Distrelec), a high-service, digitalled distributor of industrial and maintenance, repair and operations (MRO) products, for a cash and debt free value of €365m as previously announced on 27 April 2023.

Distrelec serves approximately 180,000 customers across 19 countries, significantly expanding RS’s presence in continental Europe, especially in Germany, Switzerland and Sweden. Headquartered in Manchester, UK, Distrelec has approximately 400 employees and 12 sales offices across Europe. It also operates two distribution centres in Switzerland and the Netherlands and a shared service centre in Latvia.

Distrelec is a complementary business to RS with a comparable product mix and

UK Labour Market

Shrinks by Nearly a customer-centric focus, plus industry-leading product availability. Similar to RS, two thirds of Distrelec's revenue are from digital channels and the average order value is also comparable to RS. This strong competitive position increases RS’s revenue by c. 40% in DACH (Germany, Austria and Switzerland), c. 80% in Scandinavia, and adds scale in Italy, Benelux and Eastern Europe.

There is a high degree of overlap in the largely European supplier base, and the combined distribution network will improve the customer experience and operational efficiency of both RS and Distrelec. In addition, there will be increased revenue synergies from cross-selling opportunities of RS’s own brand and solutions offer.

Distrelec will be integrated into the Group's EMEA region, overseen by Peter Malpas

Fifth in 2023 as Job Applications

Surge, Signalling

(President EMEA, RS) with key members of Distrelec's management team including Raj Patel (Managing Director) and Ben Scholey (Chief Information Officer).

Simon Pryce, CEO of RS Group, commented: "The acquisition of Distrelec materially strengthens our presence in key European markets. It is a complementary business to RS and has excellent value creation potential with a strong cultural and operational fit. Like RS, Distrelec promotes a high-performance culture with good levels of employee engagement and satisfaction. We look forward to welcoming the Distrelec team to the group and realising the significant value creation potential that comes from bringing RS and Distrelec together.”

RS Group plc is listed on the London Stock Exchange with stock ticker RS1 and in the year ended 31 March 2023 reported revenue of £2,982 million.

an End to the Candidate-Driven Market

sise the stark challenges these industries face and the need for innovative solutions to support their recovery.

While the number of new job postings declined, job applications saw a remarkable rise of 29 per cent in the first half of 2023 compared to last year. The IT & Telecoms sector experienced the highest surge in applications, with a massive increase of 72 per cent, while the Education sector also experienced a rise of 60 per cent.

While some sectors thrived in attracting job applications, others continue to face an uphill battle. The Training sector experienced a notable decline of 34 per cent in applications, followed by the FMCG sector with a decrease of 12 per cent. An indication that more can be done to bridge the gap between job seekers and available opportunities in these sectors.

Researchconducted by Reed.co.uk, one of the UK’s leading jobs and careers sites, has revealed a significant decrease of 17 per cent in job postings during the first half of 2023 compared to the previous year. Over the same period, there has been a steep 29 per cent rise in job applications, suggesting a softening of the UK’s labour market and a potential shift in the balance of power between employers and employees.

The drop in job postings reflects the ongoing economic challenges faced by businesses in the first half of 2023. However, certain sectors have showcased remarkable resilience and growth despite the uncertain landscape. The Motoring & Automotive sector experienced a surge of 63 per cent in job postings, followed closely by the Energy sector with a 47 per cent increase.

Conversely, Reed.co.uk data revealed that the Hospitality and Catering sector experienced a steep decline of 41 per cent in job postings, while the Social Care sector experienced a 39 per cent drop. These figures empha-

As expected, given the ongoing cost-of-living crisis, average salary offering across every sector rose in the first half of 2023 compared to last year. Sectors that saw the greatest rise include the FMCG (20.8 per cent), Charity & Voluntary (14.5 per cent), Manufacturing (10.6 per cent) and Customer Service (10.1 per cent) sectors.

Meanwhile, roles in the Scientific, Financial Services and Human Resource sectors experienced the least YOY growth in average salary offerings — 2.1 per cent, 2.1 per cent and 0.5 per cent respectively. Dragging far below the rate of inflation over that same period.

Northern Ireland emerged as the most resilient according to Reed’s data, with a 3 per cent boost in job postings, potentially a sign of increased business confidence in the aftermath of the Windsor Framework.

All regions in England experienced a decline in job postings ranging from 15-18 per cent, with London itself experiencing the largest drop at 18 per cent.

Notably, North West England and Yorkshire saw a significant boost in job applications – an increase of 34 per cent and 35 per cent, respectively, demonstrating potential growth avenues for businesses wanting to level up.