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Russel Metals Expands US Presence with Kloeckner Acquisition

Story Highlights
  • Russel Metals to acquire seven US service centers from Kloeckner for $118.6 million.
  • The acquisition will boost Russel’s US revenue base to over 50% and enhance operations.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Russel Metals Expands US Presence with Kloeckner Acquisition

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The latest announcement is out from Russel Metals ( (TSE:RUS) ).

Russel Metals Inc. has announced an agreement to acquire seven service center locations from Kloeckner Metals Corporation for approximately US$118.6 million. This acquisition is expected to enhance Russel’s geographic footprint in the US South and Midwest, aligning with its long-term growth strategy. The transaction will increase Russel’s revenue base in the US to over 50% and is anticipated to provide operational benefits through improved inventory management and facility upgrades. The deal is expected to close by Q4 2025 or Q1 2026, subject to customary conditions.

The most recent analyst rating on (TSE:RUS) stock is a Buy with a C$48.00 price target. To see the full list of analyst forecasts on Russel Metals stock, see the TSE:RUS Stock Forecast page.

Spark’s Take on TSE:RUS Stock

According to Spark, TipRanks’ AI Analyst, TSE:RUS is a Outperform.

Russel Metals shows a solid overall performance, driven by strong earnings growth and attractive valuation. The company’s financial stability and shareholder returns are positive, but challenges in cash flow growth and potential margin pressures are notable risks. Technical indicators suggest a neutral market sentiment.

To see Spark’s full report on TSE:RUS stock, click here.

More about Russel Metals

Russel Metals Inc. is one of the largest metals distribution companies in North America, focusing on value-added processing. The company operates in three segments: metals service centers, energy field stores, and steel distributors. Its service centers offer a wide range of metal products, including carbon steel, stainless steel, aluminum, and other specialty metals. The energy field stores cater to the energy industry’s needs, while the steel distributors sell large volumes of steel to other service centers and manufacturers.

YTD Price Performance: -2.03%

Average Trading Volume: 132,213

Technical Sentiment Signal: Buy

Current Market Cap: C$2.24B

For an in-depth examination of RUS stock, go to TipRanks’ Overview page.

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