Canadian distributor Russel Metals has expanded its U.S. footprint by agreeing to acquire Arkansas-based service center Boyd Metals. The deal, valued at $110 million, includes all five of Boyd’s facilities.
Boyd’s operations in Arkansas, Missouri, Oklahoma, and Texas deliver a product mix primarily comprised of carbon steel products. The company also offers stainless steel, aluminum and other industrial products as well as associated value-added processing services.
Boyd’s revenue for the fiscal year ended Sept. 30 totaled $244 million and adjusted EBITDA was $39 million, the company said.
The latest move by Russel Metals is the third major strategic transaction by the Mississauga, Ontario-based distributor over the past 12 months. Last December, Russel acquired metals service center Sanborn Tube Sales of Wisconsin, Inc., followed by the merger in April of its Canadian OCTG/line pipe business with that of Marubeni-Itochu Tubulars America, Inc.
“Over the past 15 months, we have significantly repositioned our business portfolio with the strategic objectives of enhancing returns, increasing margins and reducing volatility,” Russel President and CEO John Reid said.
“The acquisition of Boyd is a continuation of this repositioning,” he said. “We believe their culture, experienced management team and business platforms are very much aligned with our existing business as we look to further expand our U.S service center footprint.”
Russel Metals is one of the largest metals distributors and processors in North America.
By David Schollaert, David@SteelMarketUpdate.com
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