Russel Metals Inc. (TSX:RUS) announced that it will acquire Apex Distribution Inc. and related companies.
As quoted in the press release:
Apex Distribution is a leading Canadian oilfield supply company servicing the energy segment in Western Canada. Apex Distribution’s annual revenues for its fiscal year ended April 30, 2012 were approximately $500 million and its earnings before interest and taxes were approximately $42 million. Apex Distribution will continue to operate as a standalone unit led by Don White, its current President and CEO.
President and CEO of Russel Metals, Brian Hedges, and President and CEO of Apex Distribution, Don White, said:
We are extremely excited to have reached an agreement between our companies and we believe the combination provides considerable upside potential for both companies. Apex Distribution complements Russel Metals’ existing energy tubular products segment and provides a new channel of distribution into the Western Canadian oil and gas industry and the Saskatchewan potash market, along with immediate growth opportunities in the U.S. market through Apex Remington, a growing oilfield distribution operation in the U.S.