Service Centers

Canadian Joint Venture Creates TriMark Tubulars

Written by Tim Triplett

TriMark Tubulars is a new brand in the market, but not a brand new competitor. Russel Metals and Marubeni-Itochu Tubulars America Inc. have combined their Canadian oil country tubular goods (OCTG) and line pipe businesses into a joint venture that will be better equipped to handle the challenging conditions in the energy market.

Russel Metals had operated its Canadian OCTG/line pipe business through its subsidiary Triumph Tubular & Supply Ltd. Marubeni-Itochu Tubulars America had operated its Canadian OCTG/line pipe business through its subsidiary Hallmark Tubulars Ltd. The combined business of Triumph and Hallmark will now operate as TriMark Tubulars.

“This transaction is a major component in our strategy to repatriate capital from our OCTG//line pipe business to other value-enhancing opportunities. In addition, our ongoing interest in TriMark will allow us to participate in the future success of the combined business,” said Russel President and CEO John Reid.

Mississauga, Ontario-based Russel Metals is one of the largest metals distribution companies in North America. Its network of service centers carries an extensive line of metal products including pipe and tube. The merger will give the company new economies of scale and will help it weather volatile conditions in the oil and gas sectors. Russel officials said earlier this year that the company would contribute assets of approximately $111 million to the partnership and would receive near-term cash realization of $138 million and a 50% equity interest in TriMark.

Latest in Service Centers