Russel Metals (OTCPK:RUSM.F) Earnings Call Presentation

Acquisition Details - Russel is acquiring assets from Kloeckner Metals Corporation, including seven US locations and related assets [13] - The purchase price is US$51.5 million plus the net book value of working capital, totaling US$118.6 million as of June 30, 2025 [13] - The acquired Kloeckner operations historically generated approximately US$500 million in revenue and US$20 million in Adjusted EBITDA annually (from January 1, 2023 to June 30, 2025) [13] - The acquisition is expected to close in late 2025 or early 2026 and will be financed from existing liquidity [13] Strategic Rationale - The acquisition expands Russel's US footprint and enhances geographic coverage in key industrial hubs [15, 16] - It increases the proportion of Russel's US revenue base to over 50% on a pro forma basis [13] - The company plans to reinvest in the acquired locations to improve operating performance [13, 16] Financial Position - As of June 30, 2025, Russel had $566 million in liquidity [13] - Pro forma for the Kloeckner acquisition, net debt increases from C$104 million to C$266 million [18] - Pro forma for the Kloeckner acquisition, Net Debt/Invested Capital increases from 6% to 14% [18] - Russel reduced invested capital related to the Samuel acquisition by approximately C$100 million through facility closure and real estate monetization [19]