Canadian steel processor, Russel Metals has entered a purchase agreement with Sanborn Tube Sales of Wisconsin and expects to close the deal by Dec 31. The value of the transaction has not been disclosed.
Sanborn is a metals distributor operating in Pewaukee, close to Russel’s service centers in Wisconsin. Sanborn has recorded annual sales of about $19mn over the past few years. The acquisition will enable Russel to expand both its product lines and processing capabilities in the Midwest region. All of Sanborn staff will be retained under the agreement.
Russel Metals operates metals service centers and distributes steel across North America. Its product offerings include carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel, aluminum and other non-ferrous products. Russel generated a net income of C$77mn ($59.6mn) in 2019.
($1 = C$1.29)