Service Centers

Russel Metals to acquire Tampa Bay Steel

November 13, 2024

Mississauga, Ontario-based metals distributor Russel Metals has inked a deal to buy Tampa Bay Steel for $79.5 million.

Tampa Bay Steel Corp., a Florida-based steel distributor and metal processor, generated average annual revenues and adjusted EBITDA of $115 million and $13 million, respectively, over the past five years.

“Our approach to acquisitions is to focus on opportunities that are complementary from a product mix and geographic perspective, but also aligned with our performance-based and decentralized culture,” John Reid, President and CEO of Russel Metals, said.

“We believe that the transaction is a strong fit as it will allow us to extend our footprint into the Florida market with an experienced management team and a culture that is aligned with ours,” he added.

Tampa Bay Steel has invested about $20 million in value-added equipment and facility expansions over the past three years.

The deal is expected to close in December.

In August, Russel Metals closed its acquisition of seven service center locations in Western Canada and the northeastern US from Samuel, Son & Co. Initially, the deal was valued at CAD$225 million (US$160.7 million), but the structure included a dollar-for-dollar adjustment to the purchase price for changes in working capital in the period prior to closing. The invested capital was cut to CAD$167 million on Sept. 30.

Stephanie Ritenbaugh

Stephanie Ritenbaugh is a reporter for Steel Market Update. She is an experienced business journalist, holding a variety of positions for trade publications and newspapers, including covering shale development for Gas Business Briefing/Platts and for the Pittsburgh Post-Gazette. She can be reached at stephanie.ritenbaugh@crugroup.com or +1 724-759-7868