Russel Metals Inc. has closed its acquisition of seven U.S. metals service centers from Kloeckner Metals Corporation for $102 million, the company said, expanding its footprint across the Southeast, Midwest and Texas.
The transaction, which is subject to customary working-capital adjustments, includes service centers in Dubuque, Iowa; Charlotte, North Carolina; Suwanee, Georgia; Houston and Austin, Texas; and Jacksonville and Pompano Beach, Florida.
The acquired locations operate as full-line metals service centers supplying carbon steel, pipe and tubular products, stainless steel, aluminum and other specialty metals to industrial and manufacturing customers. Russel Metals said the deal strengthens its presence in several strategically important regional markets and adds scale to its U.S. operations.
“We look forward to expanding our U.S. footprint in key geographic areas,” John Reid, president and chief executive officer of Russel Metals, said in a statement. “We welcome the Kloeckner employees to the Russel family.”
Based in Canada, Russel Metals is one of the largest metals distribution companies in North America, with operations organized across three segments: metals service centers, energy field stores and steel distributors. Its metals service centers provide a broad range of steel and nonferrous products, increasingly complemented by value-added processing services. The company’s energy field stores focus on specialized products for energy-industry customers, while its steel distribution business acts as a master distributor selling large volumes of steel to other service centers and large equipment manufacturers.
The acquisition follows a broader pattern of consolidation in the metals distribution sector, as distributors seek to deepen geographic coverage, improve operating leverage and invest in processing capabilities amid volatile steel pricing and uneven industrial demand.
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