TORONTO,
Dec. 2, 2013 /PRNewswire/ - 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
companies."
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 energy segment."
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.