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

Klöckner narrows Q1 loss, targets growth in North America and Europe
Germany’s Klöckner & Co. reported a narrower loss in the first quarter as the company targets becoming the “leading” service center and metal processing firm in North America and Europe by 2030.

Russel mulls buying US service centers despite Q1 profit dip
Russel Metals’ earnings slipped in the first quarter, but the company is still eyeing service center acquisitions in the US.

Olympic Steel earnings slump in ‘challenging’ first quarter
Olympic Steel’s earnings slid in the first quarter as the steel industry faced a “challenging” economic conditions.

Olympic taps Scott for board, Rippey steps down
Olympic Steel elected Peter J. Scott to its board of directors at its annual meeting on May 2. At the same time, long-time director Michael G. Rippey has retired from the board after 10 years.

Ryerson narrows loss in first quarter
Ryerson's net loss shrinks in first quarter.