RUSSEL METALS RECEIVES REGULATORY CLEARANCE ON SAMUEL ACQUISITION

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Rhea-AI Summary

Russel Metals (TSX: RUS) has obtained a no-action letter from the Canadian Competition Bureau for its acquisition of seven service center locations from Samuel, Son & Co. The transaction is expected to close in Q3 2024, pending customary conditions. CEO John Reid expressed optimism about the acquisition's positive impact on customers, suppliers, employees, and communities. Russel Metals is a major North American metals distributor with segments in metals service centers, energy field stores, and steel distributors. The company offers a wide range of metal products and specialized services for the energy industry.

Positive

Received regulatory clearance from the Canadian Competition Bureau.
Transaction expected to close in Q3 2024.
Acquisition likely to benefit customers, suppliers, employees, and communities.
Expands Russel Metals' service center locations by seven.
Potential to increase market share in North America's metal distribution sector.

Negative

Pending the completion of customary closing conditions, which introduces risk.
Integration challenges of merging Samuel's operations into Russel Metals.
Potential short-term financial strain due to acquisition costs.

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06/04/2024 - 08:00 AM EDT

TORONTO, June 4, 2024 /PRNewswire/ - Russel Metals Inc. (TSX: RUS) announces that it has received a no-action letter from the Canadian Competition Bureau regarding our previously announced transaction with Samuel, Son & Co., Limited ("Samuel"), whereby we agreed to acquire seven service center locations from Samuel. Therefore, subject to completion of customary closing conditions, we expect to close the full transaction in the third quarter of 2024.

John Reid, President and CEO of Russel Metals commented, "We are pleased to have obtained regulatory clearance, as we think the acquisition will be favourable for our customers, suppliers, employees and the communities in which we operate. We are now working on the next stage of the transaction, as we plan for closing and look forward to welcoming the Samuel employees into the Russel family."

About Russel Metals Inc.

Russel Metals is one of the largest metals distribution companies in North America with a growing focus on value-added processing. It carries on business in three segments: metals service centers, energy field stores and steel distributors. Its network of metals service centers carries an extensive line of metal products in a wide range of sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel, aluminum and other non-ferrous specialty metals. Its energy field stores carry a specialized product line focused on the needs of energy industry customers. Its steel distributors operations act as master distributors selling steel in large volumes to other steel service centers and large equipment manufacturers mainly on an "as is" basis.

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Website: www.russelmetals.com

View original content:https://www.prnewswire.com/news-releases/russel-metals-receives-regulatory-clearance-on-samuel-acquisition-302162562.html

SOURCE Russel Metals Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the latest regulatory update on Russel Metals' acquisition of Samuel's service centers?

Russel Metals has received a no-action letter from the Canadian Competition Bureau, clearing the acquisition to proceed.

When is Russel Metals expected to complete the acquisition of Samuel's service centers?

The transaction is expected to close in the third quarter of 2024, pending customary closing conditions.

How will the acquisition of Samuel's service centers impact Russel Metals?

The acquisition is expected to benefit customers, suppliers, employees, and communities, while expanding Russel Metals' service center locations.

What are the potential risks associated with Russel Metals' acquisition of Samuel's service centers?

Potential risks include the completion of customary closing conditions and integration challenges.

RUSSEL METALS RECEIVES REGULATORY CLEARANCE ON SAMUEL ACQUISITION