Service Centers
Russel to Acquire Boyd Metals in $110 Million Deal
Written by David Schollaert
November 5, 2021
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
David Schollaert
Read more from David SchollaertLatest in Service Centers
Reliance earnings fall 21% in tough pricing environment
Reliance Inc.’s earnings slumped in the first quarter of 2024, but the company expects better than normal seasonal recovery in demand in the second quarter.
Galvanized buyers report stable demand in quiet market
Galvanized buyers reported steady demand and ample supply this week as pricing momentum has shifted, potentially pointing down. Service centers, distributors, and manufacturers who are members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI) association met virtually on Tuesday, April 23, for the monthly meeting of HARDI’s Sheet Metal/Air Handling Council. Sentiment was noticeably […]
Lapham-Hickey buys Crystal Steel
Lapham-Hickey Steel has acquired the operating assets of Crystal Steel Corporation of Middleton, Mass., for an undisclosed sum.
Russel’s buy of Samuel locations faces regulatory hurdle
Russel Metals Inc.’s planned purchase of seven service centers in western Canada from Samuel, Son & Co. has been delayed.
Steel Warehouse rebrands cold mill division as ‘Specialty Strip’
Steel Warehouse Co. has announced the rebranding of its Cold Mill division as “Specialty Strip,” a boutique cold mill.