Russel completes acquisition of Kloeckner US service centres
Canada’s Russel Metals has closed on the acquisition of seven steel service centres from Kloeckner Metals for $102 million, Kallanish learns from a company press release.
Russel says the acquisition will expand the Toronto, Ontario-based company’s market share in the US.
“We look forward to expanding our US footprint in key geographic areas,” states Russel Metals president and chief executive John Reid. “We welcome the Kloeckner employees to the Russel family.”
The deal is subject to normal working capital adjustments. The US service centre locations include Dubuque, Charlotte, Suwanee, Houston, Austin, Jacksonville and Pompano Beach.
Russel expects to increase market share as the US manufacturing base rebounds and Canadian nation-building projects advance. Executives see benefit from infrastructure investment, including rising demand from data centres (see Kallanish 10 November).
Russel Metals is one of the largest metals distribution companies in North America, with business segments split between metals service centres, energy field stores and steel distributors.
