Distributors/Service Centers
Russel Acquires City Pipe & Supply
Written by Tim Triplett
August 20, 2019
Canada’s Russel Metals has expanded its presence in the oilfield with the $160 million acquisition of City Pipe & Supply Corp.
City Pipe & Supply supplies pipe, valves and fittings to oil and gas companies in the Permian, Eagle Ford, Granite Wash, Barnett and Haynesville basins, which collectively represent approximately 60 percent of the active rigs in the United States. The company had revenues of $275 million in its last fiscal year.
City Pipe & Supply operates five distribution centers located in Odessa, Big Spring, Weatherford and Longview, Texas, and Hobbs, N.M. The current management team will remain in place and Brett Lossin will continue to serve as president.
“We are extremely pleased to have entered into this agreement. City Pipe & Supply is both a strategic and cultural fit that affords us the opportunity to further expand our high-margin oilfield services business in the Permian basin,” said John Reid, Russel president and CEO. “Brett Lossin and the City team have an outstanding reputation and their existing footprint complements our Apex Remington operation.”
Russel, one of the largest metals distribution companies in North America, will finance the purchase with $100 million in cash and the remainder from its bank facility. It expects to close on the transaction in the fourth quarter.
Editor’s note: Russel President and CEO John Reid will be a featured speaker at Steel Market Update’s Steel Summit, set for Aug. 26-28 in Atlanta. Click here for more information.
Tim Triplett
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