On December 4, 2023, Russel Metals Inc. entered into an agreement to acquire seven service center locations from Samuel, Son & Co., Limited for about $225 million. This value was based on the net book value of working capital ($186 million as of September 30, 2023), the net book value of equipment and machinery ($29 million), plus an additional $10 million. The acquisition includes Samuel's metals service centers in Winnipeg, Calgary, Nisku, Langley, Surrey, Buffalo, and Pittsburgh, while Samuel retains and plans to shut down its Delta location.

For the year ending December 31, 2022, these centers generated $704 million in revenues and $33 million in adjusted EBITDA. For the nine months up to September 30, 2023, they produced revenues of $457 million and adjusted EBITDA of $19 million.

John Reid, President and CEO of Russel Metals, highlighted the complementary nature of the businesses in geographic and product mix. The acquisition is set to integrate around 340 Samuel employees into Russel Metals. The transaction is expected to bolster Russel's operations in Western Canada and provide an eastern extension in the US Northeast.

Funded by Russel's cash reserves ($569 million as of September 30, 2023), the deal is subject to Canadian regulatory approval and customary closing conditions, anticipated to close in the first or second quarter of 2024.