Service Centers

Russel Metals to acquire Tampa Bay Steel
Written by Stephanie Ritenbaugh
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
Read more from Stephanie RitenbaughLatest in Service Centers

Steel Summit: Service center CEOs share straight talk on markets, customers, future
The chief executives from Majestic Steel, Olympic Steel, and Worthington Steel swapped notes on inventory discipline, customer trust, and the race to turn AI from hype into results.

Steel Summit: Analysts say demand likely to struggle until 2027
Steel industry analysts at this year's SMU Steel Summit said they see lackluster demand through this year and next.

Varsteel acquires Reliable Tube and Spartan Metal Processing
Varsteel Ltd. announced two new strategic acquisitions. The Canadian service center stated that the acquisitions position it to meet a wider range of steel product needs.

Steel Summit: Reliance CEO eyes potential M&A in Mexico, highlights tech plans
Karla Lewis, president and CEO of Reliance Inc., told attendees of SMU’s Steel Summit 2025 that North America’s largest service center company is eyeing strategic opportunities in Mexico.

Galvanized steel prices slip while demand remains flat: HARDI
Galvanized steel prices dipped to ~$48/hundredweight in August from the $50-59/hundredweight range during the month of July.