Tampa Bay Steel, a locally based metal and steel distribution company, is being acquired by Toronto-based Russel Metals for $79.5 million.
The merger allows Russel Metals, one of the largest metals distribution companies in North America, to have a stronger hold of the Central Florida market. Russel Metals operates metals service centers, energy field stores and steel distributors, according to a press release.
“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, said John Reid, president and CEO of Russel Metals in a statement. “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.”
Tampa Bay Steel invested $20 million in equipment and a facility expansion over the last three years in Florida, the release said. The company, which has been based in Tampa for 40 years, generates average annual revenues of $115 million over the past five years.
The merger is expected to close in December.
