Service Centers
Russel Metals to Merge Canadian OCTG Business
Written by Sandy Williams
April 15, 2021
Metals distributor Russel Metals and Marubeni-Itochu Tubulars America, Inc., plan to merge their Canadian OCTG/line pipe businesses. The new entity will be a 50/50 joint venture named TriMark Tubulars Ltd, a combination of Russel’s Triumph Tubular & Supply Ltd and MITA’s Hallmark Tubulars Ltd.
The merger is a result of changing business conditions for the OCTG/line pipe industry due to a challenging energy market and the removal of “middlemen” in the supply chain by certain direct-to-market manufacturers. The merger will result in a company with the necessary economies of scale as well as a diverse product platform, said Russel Metals.
John Reid, president and CEO of Russel Metals, commented, “Over the past nine months, we have been strategically focused on both rationalizing the operations and reducing the capital deployed in our OCTG/line pipe businesses. This transaction provides an opportunity to substantially repatriate capital for deployment in other value-enhancing opportunities, but also to retain an ongoing interest and participate in the future success of the combined business.”
Russel Metals is contributing assets of approximately $111 million to the partnership and will receive near-term cash realization of approximately $138 million and a 50% equity interest in TriMark.
Sandy Williams
Read more from Sandy WilliamsLatest in Service Centers
Gilmore upbeat on year two as standalone Worthington Steel
Worthington Steel's CEO feels optimistic as the company heads into its second year as a standalone company.
Worthington Steel’s earnings improve despite sales slide
Depressed demand and weak prices drove Worthington Steel’s second fiscal quarter results to a sequential decline.
O’Neal Steel taps Jodi Parnell as top executive
Jodi Parnell has been named president and CEO of Birmingham, Ala.-based service center group O’Neal Steel.
Russel closes on Tampa Bay Steel deal
Russel Metals Inc. has closed on its buy of Tampa Bay Steel.
Worthington Steel inks deal for controlling stake in Italy’s Sitem
Worthington Steel has reached an agreement to acquire a controlling equity stake in Italian-based electric motor lamination producer Sitem SpA.