Rexel buys 73.5 pct of China's Suzhou Xidian

PARIS, Feb 18 (Reuters) - French electrical goods distributor Rexel REXL.PA said on Monday it was buying an initial 73.5 percent stake in Chinese electrical supplies distributor Suzhou Xidian for an undisclosed amount.

Under the terms of the deal, which must be approved by relevant authorities, Rexel will increase its stake to 100 percent within three years, the statement said.

Suzhou Xidian had 2007 sales of around 38 million euros ($55.81 million) and its growth rate is higher than the average market growth rate in China. It employs 115 people and has seven branches, of which six are in the Shanghai area and one in Beijing.

The acquisition follows that of Huazhang Electric Automation in March 2007 and is Rexel's second in China in the past 12 months.

With a strong presence in the Shanghai and Beijing regions, Rexel had 2007 pro-forma sales of 120 million euros in China, where it has 580 employees. (Reporting by Dominique Vidalon; Editing by Paul Bolding)