We are excited about the possibility of expanding our presence in Mexico and having a solid platform to expand in Latin America, a region that we see benefiting from offshoring due to deglobalization and a greater focus on improving sustainability by reducing the distances that products travel.

Risoul is a distributor of industrial and automation products and services in Mexico, a highly fragmented market, with nearly 50 years of operational and automation experience. The company distributes a wide variety of products and is the largest authorized distributor of Rockwell Automation in Latin America and the tenth largest worldwide, with rights to distribute its products in major industrial areas of Mexico and other countries.
Risoul also offers several service solutions, including on-site product training, assembly of circuit boards and control panels, air conditioning maintenance, repair of specialized tools, and smart grid infrastructure services.

RS Group expects the acquisition of Risoul to generate significant revenue synergies. Combining Risoul's established presence in Mexico with RS Group's range of complementary and auxiliary products, including its leading proprietary brand RS PRO, will support an increase in the average order value for existing customers. We will develop Risoul's digital presence to enhance customer engagement and offer a broader product range, while improving execution capabilities and increasing efficiency. We anticipate that the combination will significantly improve the outlook for employees, customers, and suppliers of both organizations.

In the fiscal year ended September 30, 2021, Risoul generated revenues of $166 million and earnings before interest and taxes of $19 million.
Under the distribution agreement with Rockwell Automation, Risoul will continue to operate as an independent business within the broader Americas region, with Gerardo Ayala Guarneri, CEO of Risoul, reporting to Ken Bradley, president of RS Americas.