05:24 PM EST, 11/12/2024 (MT Newswires) -- Russel Metals ( RUSMF ) after trade Tuesday said it agreed to acquire Tampa Bay Steel for US$79.5 million, subject to standard adjustments.

The purchase includes working capital, buildings, equipment, and related real estate, the company said, adding that the deal will be financed via cash on hand or drawings under its credit facility.

"We believe that the transaction is a strong fit as it will allow us to extend our footprint into the Florida market with an experienced management team and a culture that is aligned with ours," Chief Executive John Reid said.

He added that Tampa Bay Steel has invested about US$20 million in equipment and facility expansion over the past three years and has strong growth potential in the Florida market. "We look forward to having the Tampa Bay Steel employees join the Russel family."

The transaction is set to close in December, according to the statement.

Russel shares closed down $0.35 to $42.84 on the Toronto Stock Exchange.