France's Rexel Group, a distributor of electrical supplies, has agreed to buy the GE Supply unit of General Electric ( GE) in a $725 million deal.

GE Supply, an electrical distribution business based in Shelton, Conn., had U.S. revenue of more than $2 billion in 2005. Rexel's U.S. unit had $2.5 billion in sales last year. GE Supply employs roughly 2,500 people in more than 150 locations around the world.

Rexel expects to close the transaction by early August, subject to the consent of its senior lenders.

Shares of GE slipped 6 cents to $33.39 in premarket trading Tuesday.