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
Miami Valley Steel Service announces personnel changes
The Piqua, Ohio-based service center announced the retirement of its CFO and other personnel changes.
October service center shipments and inventories report
Flat rolled = 63.4 shipping days of supply Plate = 52.4 shipping days of supply Flat rolled shipments and inventories Flat-rolled steel supply at US service centers remains seasonally high. October inventories increased after edging lower in September – a dynamic driven largely by disappointing demand. October’s report reflects lower demand and stable lead times […]
Russel Metals to acquire Tampa Bay Steel
Tampa Bay Steel, a Florida-based steel distributer and metal processer, generated average annual revenues of about US$115 million
Friedman swings to loss amid ‘challenging’ market
Friedman Industries swung to a loss in its fiscal second quarter ended Sept. 30 amid “challenging” business conditions.
Worthington Steel taps Larivey as flat-rolled steel president
Worthington Steel has named Cliff Larivey as the company’s president of flat-rolled steel processing, effective Dec. 1. He will replace Jeff Klingler, who had been performing the role for the past year.