Russel Metals to Acquire JMS Metal Services
09/05/2007 - Russel Metals enters into share purchase agreement to acquire 100% of the outstanding capital stock of JMS Metals Services and related companies.
Russel Metals Inc. has entered into a share purchase agreement to acquire 100% of the outstanding capital stock of JMS Metals Services, Inc. and related companies.
The total transaction value will be approximately CDN$125 million. Russel Metals says it will fund the purchase from its $207-million cash balance as of June 30, 2007.
“The acquisition of JMS provides Russel Metals with a new geographic presence in the USA and a management team that will further grow our U.S. business—both organically and through further acquisitions,” said Bud Siegel, President and CEO. “We have patiently waited for over four years to find a company such as JMS where we are completely comfortable that the culture and focus is similar to ours and that all parties feel the transition will be seamless in nature.”
JMS, a full-line distributor of steel and aluminum products, operates eight strategically located processing and distribution facilities in Alabama, Arkansas, Georgia, Kentucky and Tennessee. JMS revenues are expected to reach approximately CDN$200 million for the current year ended December 31, 2007.
“JMS is an excellent addition to our metals service center segment,” commented Brian Hedges, Executive Vice President and CFO, who also noted that the “immediately accretive investment will continue to strengthen our ability to pay our industry-leading dividend.”
The transaction is expected to close at the end of the third quarter.
Russel Metals, one of the largest metals distribution companies in North America, conducts business in three distribution segments: metals service centers, energy tubular products and steel distributors. The company operates under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Milspec Industries, Pioneer Pipe, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel, and York-Ennis.
Russel Metals, one of the largest metals distribution companies in North America, conducts business in three distribution segments: metals service centers, energy tubular products and steel distributors. The company operates under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Milspec Industries, Pioneer Pipe, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel, and York-Ennis.
