TORONTO, Dec. 2, 2013 /CNW/ - Russel Metals Inc. (RUS - TSX) announced
today that it has closed an acquisition to acquire the operations of
Monarch Supply Ltd.
Monarch Supply is an oilfield supply company predominately servicing the
Drayton Valley, Alberta area. Monarch Supply has annual revenues of
approximately $50 million and earnings before interest and taxes of
approximately $8 million. The purchase prices includes cash
consideration of approximately $33 million plus a five year earnout to
be paid based on future earnings before interest and taxes and return
on net assets.
Monarch Supply will report to Don White, President and CEO of Apex
Distribution, and the existing management and employee group will
continue to be responsible for the operations of Monarch Supply.
Don White, President and CEO of Apex Distribution stated "Apex
Distribution has benefited from a long time working relationship with
Monarch Supply. There is an excellent fit between the product
offerings, customer base and distribution capabilities of the two
Brian R. Hedges, President and CEO of Russel Metals stated "The addition
of Monarch Supply cements a long standing relationship between Monarch
Supply and Apex Distribution and provides further growth for our
business in the oilfield products market. We are also investing in
greenfield locations through Apex Remington in the active shale plays
in the USA, which will provide further growth opportunities for our
Russel Metals is one of the largest metals distribution companies in
North America. It carries on business in three metals distribution
segments: metals service centers, energy products and steel
distributors, under various names including Russel Metals, A.J.
Forsyth, Acier Leroux, Acier Loubier, Alberta Industrial Metals, Apex
Distribution, Apex Remington, Arrow Steel Processors, B&T Steel,
Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS
Russel Metals, Leroux Steel, McCabe Steel, Mégantic Métal, Métaux
Russel, Métaux Russel Produits Spécialisés, Milspec, Norton Metals,
Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams
Bahcall, Siemens Laserworks, Spartan Energy Tubulars, Sunbelt Group,
Triumph Tubular & Supply, Wirth Steel and York-Ennis.
SOURCE: Russel Metals Inc.
For further information:
Marion E. Britton, C.P.A., C.A.
Executive Vice President and Chief Financial Officer
Russel Metals Inc.