Russel Metals Inc. has entered into an agreement to acquire Tampa Bay Steel Corporation for $79.5 million, subject to normal course adjustments. The purchase price includes working capital, buildings and equipment, and the related real estate. Tampa Bay Steel has a long standing and well-respected management team in the central Florida region, and its business includes significant value-added processing and non-ferrous products.
John Reid, President and CEO of Russel Metals commented, "Our approach to acquisitions is to focus on opportunities that are complementary from a product mix and geographic perspective, but also aligned with our performance-based and decentralized culture. We believe that the transaction is a strong fit as it will allow us to extend our footprint into the Florida market with an experienced management team and a culture that is aligned with ours. In addition, Tampa Bay Steel has invested approximately US$20 million in value-added equipment and facility expansion over the past three years, and has a platform for further growth within the Florida market. We look forward to having the Tampa Bay Steel employees join the Russel family.”
