Tampa Bay Steel to be acquired by Canadian company for $79.5M
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Tampa Bay Steel, a well-established metal and steel distribution company in Tampa for over 40 years, will be acquired by Toronto-based Russel Metals for $79. 5 million. This acquisition is poised to enhance Russel Metals' footprint in the Central Florida market, allowing the Canadian firm to benefit from Tampa Bay Steel's extensive knowledge and management expertise. Russel Metals, recognized as one of North America's largest metals distribution companies, plans to leverage this acquisition to strengthen its operations in the region. In a statement, John Reid, the president and CEO of Russel Metals, emphasized the importance of complementary product mixes and geographic alignment in their acquisition strategy.
Tampa Bay Steel has recently invested $20 million in new equipment and facility expansions, which positions it as a significant player in the industry. With average annual revenues of $115 million over the past five years, the company has demonstrated robust performance. The merger is projected to finalize in December 2024, indicating potential growth opportunities for both entities. The acquisition reflects ongoing consolidation trends within the metals distribution sector, promising to reshape market dynamics in Florida.