<p>US steel service center Russel Metals Inc has entered into an agreement to acquire a group of companies that operate as Boyd Metals for USD 110 million, subject to closing adjustments. Boyd operates five service centers in Fort Smith in Arkansas, Little Rock in Arkansas, Joplin in Missouri, Oklahoma City in Oklahoma and Tyler in Texas. Boyd's product mix is primarily comprised of carbon steel products, but also includes stainless steel, aluminum and other related industrial products. Boyd also offers value-added processing services and has invested to expand such capabilities over the past several years. For the twelve months ended September 30, 2021, Boyd generated revenues of USD 244 million and Adjusted EBITDA of USD 39 million.</p> <p>The purchase price of USD110 million includes working capital, buildings and equipment, real estate and other related assets.</p> <p>The transaction will be financed from Russel's cash on hand and/or drawings under its existing bank facility. At September 30, 2021, Russel had USD 337 million of cash and substantial availability under its bank facility. The transaction is subject to customary conditions and is expected to close in the fourth quarter of 2021.</p> <p>Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three segments: metals service centers, energy products 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.</p>
<p>US steel service center Russel Metals Inc has entered into an agreement to acquire a group of companies that operate as Boyd Metals for USD 110 million, subject to closing adjustments. Boyd operates five service centers in Fort Smith in Arkansas, Little Rock in Arkansas, Joplin in Missouri, Oklahoma City in Oklahoma and Tyler in Texas. Boyd's product mix is primarily comprised of carbon steel products, but also includes stainless steel, aluminum and other related industrial products. Boyd also offers value-added processing services and has invested to expand such capabilities over the past several years. For the twelve months ended September 30, 2021, Boyd generated revenues of USD 244 million and Adjusted EBITDA of USD 39 million.</p> <p>The purchase price of USD110 million includes working capital, buildings and equipment, real estate and other related assets.</p> <p>The transaction will be financed from Russel's cash on hand and/or drawings under its existing bank facility. At September 30, 2021, Russel had USD 337 million of cash and substantial availability under its bank facility. The transaction is subject to customary conditions and is expected to close in the fourth quarter of 2021.</p> <p>Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three segments: metals service centers, energy products 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.</p>
