Russel Metals Inc., one of the largest Canadian companies for the sale and processing of metals, has entered into an agreement with the American Marubeni-Itochu Tubulars America Inc. (MITI) on the sale of 50% in TriMark Tubulars Ltd. This is reported in the Russel press release.
The transaction value is $61 million.
The transaction is expected to be completed in the third quarter of 2023 after regulatory approval.
The deal is in line with Russel's strategy aimed at phasing out the OCTG/line pipe business. Over the past three years, the company has reinvested $375 million from the OCTG/line business into core segments with higher profitability and lower risk.
TriMark was established in July 2021 as part of the merger of Canadian enterprises Russel Metals and MITI for the production of OCTG/line pipes. The headquarters is located in Calgary (Canada).
After the formation of Trimark, Russel converted $109 million into cash and retained a $32 million equity stake in TriMark.
Russel Metals is one of the largest metal distribution and processing companies in North America. The company is focused on three segments (metal service centers, energy stores and steel distributors) that offer carbon steel, pipes, stainless steel, aluminum and other non-ferrous metals for special purposes. The headquarters is located in Mississauga (Canada).
Marubeni-Itochu Tubulars America Inc imports, processes and sells metal products (slabs, billets, profiles, rails, pipe piles, sheet steel, etc.). The headquarters is located in Houston (Texas).
