CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

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CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

Russel Metals to acquire seven service centers in western Canada and US from Samuel, Son & Co.

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Metal distributor Russel Metals is acquiring seven service centres from Samuel, Son & Co., most of them located in western Canada. PHOTO courtesy Samuel, Son & Co.

Russel Metals Inc., one of the largest metals distribution companies in North America, has entered into an agreement to acquire seven service center locations from Samuel, Son & Co., Limited for approximately $225 million.

The purchase price is based on the net book value of the working capital which was approximately $186 million at September 30, 2023, plus the net book value of the related equipment and machinery for $29 million plus an additional $10 million.   

Russel will acquire Samuel’s metals service centers in Winnipeg (Manitoba), Calgary (Alberta), Nisku (Alberta), Langley (BC), Surrey (BC), Buffalo (New York) and Pittsburgh (Pennsylvania).  Samuel will retain its location in Delta (BC) and conduct an orderly shut-down of that facility. 

“Over the past several years, we’ve reviewed a significant number of potential acquisition opportunities and are excited to announce this transaction, as our respective businesses are very complementary from both geographic and product mix perspectives.  We look forward to having the approximately 340 Samuel employees join the Russel family,” said John Reid, President and CEO of Russel Metals.

Reid added that in western Canada, Samuel’s five locations will be a strong fit with Russel’s current footprint, including providing new opportunities to benefit from Samuel’s focus on non-ferrous products and Russel’s focus on value-added processing.  In the US Northeast, the two locations will provide an eastern extension of Russel’s existing operations in the US Mid-West. 

“In addition, we believe there will be opportunities to achieve operating efficiencies by more effectively managing the combined footprint, including enhanced inventory management, procurement, location integration/rationalization, and systems.  These reorganization initiatives are expected to be implemented over a  two-year period,” Reid commented.

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