Russel Metals Inc. (RUS.TO) announced that it has reached to acquire seven service center locations from Kloeckner Metals Corporation for approximately US$118.6 million, subject to customary closing adjustments related to working capital and other standard terms.
The transaction encompasses the acquisition of working capital, real estate, buildings, equipment, and the operating personnel associated with the seven facilities. The purchase price reflects the net book value of the working capital—estimated at US$67.1 million as of June 30, 2025—plus US$51.5 million attributed to property, plant, and equipment.
The transaction will be funded through available cash or by utilizing the company's existing credit facility, which had a balance of $566 million as of June 30, 2025.
Russel noted that it will acquire Kloeckner's metals service centers in Dubuque (Iowa), Charlotte (North Carolina), Suwanee (Georgia), Houston (Texas), Austin (Texas), Jacksonville (Florida) and Pompano Beach (Florida). For the period between January 1, 2023 and June 30, 2025, the seven service centers generated average annual revenues of approximately US$500 million and average annual adjusted EBITDA of approximately US$20 million.
The transaction is expected to close in fourth quarter of 2025 or the first quarter of 2026.
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