Russel Metals to Acquire Boyd Metals

5 November 2021

Russel Metals Inc., announces that it has entered into an agreement to acquire a group of companies that operate as Boyd Metals ("Boyd") for US$110 million, subject to closing adjustments.

Boyd operates five service centers in Fort Smith (Arkansas), Little Rock (Arkansas), Joplin (Missouri), Oklahoma City (Oklahoma) and Tyler (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 US$244 million and Adjusted EBITDA1 of US$39 million.

John Reid, President and CEO of Russel commented, "Over the past 15 months, we have significantly repositioned our business portfolio with the strategic objectives of enhancing returns, increasing margins and reducing volatility. As part of this strategy, we have: (i) repatriated approximately $300 million of capital through the monetization of our OCTG/line pipe businesses; (ii) invested in value-added equipment in our existing service center operations; and (iii) pursued acquisition opportunities that are complementary with our existing platform, including the acquisition of Sanborn Tube in late 2020. The acquisition of Boyd is a continuation of this repositioning. We believe their culture, experienced management team and business platforms are very much aligned with our existing business as we look to further expand our U.S service center footprint.  We look forward to having all of the Boyd employees as part of the Russel family."

The purchase price of US$110 million includes working capital, buildings and equipment, real estate and other related assets.

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 $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.

About Russel Metals Inc.
Russel Metals is one of the largest metals distribution companies in North America, with a growing focus on value added processing. 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.  Its energy products operations carry a specialized product line focused on the needs of energy industry customers. Its steel distributors operations act as master distributors selling steel in large volumes to other steel service centers and large equipment manufacturers mainly on an "as is" basis.

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Cautionary Statement on Forward-Looking Information
Certain statements contained in this press release constitute forward-looking statements or information within the meaning of applicable securities laws relating to, among other things, the anticipated benefits of the transaction, the timing and anticipated satisfaction of conditions to close the transaction and there can be no assurance that the proposed transaction will occur, or that it will occur on the exact terms contemplated in this press release.  Forward-looking statements are often, but not always, identified by the use of words such as "expect", "may", "will", "could", "might", "should", "believe" and similar expressions.  Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us, inherently involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

While we believe that the expectations reflected in our forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct, and our forward-looking statements included in this press release should not be unduly relied upon.  These statements speak only as of the date of this press release and, except as required by law, we do not assume any obligation to update our forward-looking statements.