TORONTO, Dec. 5, 2016 /PRNewswire/ - Russel Metals Inc.
(RUS - TSX) announced today that through its subsidiary JMS Russel
Metals Corp., it has entered into an agreement of purchase and sale
with Nucor Corporation to sell its property near Blytheville, Arkansas for approximately Cdn.
$40 million. The facility
encompasses roughly 60 acres of land and several buildings totaling
approximately 600,000 square feet adjacent to the Nucor sheet mill
campus. On closing, JMS Russel Metals will enter into a 20
year lease with Nucor for two buildings totaling approximately
200,000 square feet which will continue to house its coil
processing. We intend to maintain the current level of
employment at this location. The transaction is expected to close
in December 2016.
John Reid, President and Chief
Operating Officer stated "This unique transaction with Nucor, a key
business partner, allows Russel to crystallize value for an
underutilized asset which was previously acquired on favourable
terms. In addition, the facility will assist Nucor in economically
expanding their capabilities; creating further opportunities for
both Russel and Nucor. A real win-win scenario."
Russel Metals is one of the largest metals distribution
companies in North America. It carries on business in three
metals distribution segments: metals service centers, energy
products and steel distributors, under various names including
Russel Metals, A.J. Forsyth, Acier
Leroux, Acier Loubier, Alberta Industrial Metals, Apex
Distribution, Apex Monarch, Apex Remington, Apex Western
Fiberglass, Arrow Steel Processors, B&T Steel, Baldwin
International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel
Metals, Leroux Steel, McCabe Steel, Mégantic Métal, Métaux Russel,
Métaux Russel Produits Spécialisés, Milspec, Norton Metals, Pioneer
Pipe, Russel Metals Processing, Russel Metals Specialty Products,
Russel Metals Williams Bahcall, Spartan Energy Tubulars, Sunbelt
Group, Triumph Tubular & Supply, Wirth
Steel and York-Ennis.
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, including statements as to our outlook,
future events or our future performance. All statements,
other than statements of historical fact, are forward-looking
statements. Forward-looking statements are often, but not
always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "project", "predict", "potential", "targeting", "intend",
"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, including the factors described below.
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. Our actual results could differ materially from
those anticipated in our forward-looking statements including as a
result of the risk factors described under the heading "Risk" in
our MD&A and under the heading "Risks Related to Our Business
and the Metals Distribution Industry" in our most recent Annual
Information Form and as otherwise disclosed in our filings with
securities regulatory authorities which are available on SEDAR at
www.sedar.com.
SOURCE Russel Metals Inc.