Toronto-based Russel Metals has entered into an agreement of purchase and sale with Nucor Corp. to sell its property near Blytheville, Ark., for approximately $40 million CDN ($30.182 million USD).
Subsidiary JMS Russel Metals Corp. 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,” the company said in an official statement.
“This unique transaction with Nucor, a key business partner, allows Russel to crystallize value for an underutilized asset which was previously acquired on favorable terms,” said John Reid, Russel President and Chief Operating Officer. “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 does business in three metals distribution segments — metals service centers, energy products and steel distributors — under various names. Nucor-Yamato Steel Company was formed in 1987 as a joint venture between Nucor and Yamato Kogyo with the goal of operating a steel mini-mill to manufacture wide-flange beams in Blytheville. The company has the capacity to produce over 2.5 million tons per year of wide-flange beams, H-piling, sheet piling, standard I-beams, channels, and various other structural shapes.