Russel Metals Inc. announced today that it has closed an acquisition to acquire the operations of Monarch Supply Ltd.
Monarch Supply is an oilfield supply company predominately servicing the Drayton Valley, Alberta area. Monarch Supply has annual revenues of approximately $50 million and earnings before interest and taxes of approximately $8 million. The purchase prices includes cash consideration of approximately $33 million plus a five year earnout to be paid based on future earnings before interest and taxes and return on net assets.
Monarch Supply will report to Don White, President and CEO of Apex Distribution, and the existing management and employee group will continue to be responsible for the operations of Monarch Supply.
Don White, President and CEO of Apex Distribution stated "Apex Distribution has benefited from a long time working relationship with Monarch Supply. There is an excellent fit between the product offerings, customer base and distribution capabilities of the two companies."
Brian R. Hedges, President and CEO of Russel Metals stated "The addition of Monarch Supply cements a long standing relationship between Monarch Supply and Apex Distribution and provides further growth for our business in the oilfield products market. We are also investing in greenfield locations through Apex Remington in the active shale plays in the USA, which will provide further growth opportunities for our energy segment."
Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three metals distribution segments: metals service centers, energy products and steel distributors, under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Alberta Industrial Metals, Apex Distribution, Apex Remington, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, McCabe Steel, Mégantic Métal, Métaux Russel, Métaux Russel Produits Spécialisés, Milspec, Norton Metals, Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall, Siemens Laserworks, Spartan Energy Tubulars, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.
Source: http://www.russelmetals.com