Russel Metals acquiring Kloeckner Metals centers to increase US presence

The seven facilities Russel agreed to purchase are located in Iowa, North Carolina, Georgia, Texas, and Florida. According to its press announcement, the seven service centers generated ~$500 million average revenue in January 2023 through June 2025.  

“This really aligned well with both parties’ strategic objectives. And again, bear in mind we are highly transactional in nature. And again, our counterparty here, they are not transactional. They want to be more contractual,” said Reid.  

He noted how Kloeckner’s strategies were attractive to Russel as a complement to its growth approach. 

“Those are really two different channels when we look at value add for growth and how we approach the customer base. We think it aligns really, really well, in addition to the geographic growth we get, and we can continue to work through our hub-and-spoke concept, so we’ll continue to grow our value add.” 

Russel contended it is disciplined but opportunistic for acquisitions that allow it to expand its geographic footprint. Its US revenue share grew from 30% in 2019 to 39% in 2024 and was ~44% mid-2025 and will grow to ~50% pro forma post-deal.