Russel Metals Inc. is a Canadian metals distribution and processing company. It is one of North America's largest metal distribution companies, with operations across Canada and the United States.
History
The company was originally established in 1929 as Federal Grain Limited, through a merger of several grain-handling firms. In 1972, the company sold its grain assets to several grain pools, and it then renamed itself as Federal Industries Ltd.
After 1978, under the leadership of CEO John Fraser, the company expanded into a diverse range of industries, including bookstores, trucking and airplane parts. One of the businesses acquired was metals firm Hugh Russel & Sons Ltd., which had originally been founded in 1785 as John Russel & Co. in
Montreal
Montreal ( ; officially Montréal, ) is the List of the largest municipalities in Canada by population, second-most populous city in Canada and List of towns in Quebec, most populous city in the Provinces and territories of Canada, Canadian ...
by Scottish-born merchant John Russel. The company also acquired the narrow-gauge
Yukon and White Pass Railroad, which shipped freight between
Whitehorse
Whitehorse () is the capital of Yukon, and the largest city in Northern Canada. It was incorporated in 1950 and is located at kilometre 1426 (Historic Mile 918) on the Alaska Highway in southern Yukon. Whitehorse's downtown and Riverdale areas ...
,
Yukon
Yukon (; ; formerly called Yukon Territory and also referred to as the Yukon) is the smallest and westernmost of Canada's three territories. It also is the second-least populated province or territory in Canada, with a population of 43,964 as ...
, and
Skagway, Alaska
The Municipality and Borough of Skagway is a first-class borough in Alaska on the Alaska Panhandle. As of the 2020 census, the population was 1,240, up from 968 in 2010. The population doubles in the summer tourist season in order to deal wit ...
(eventually sold in 1997).
The company's expansion into diverse business lines was not successful, and it experienced significant losses during a recession in the 1990s.
As a result, it sold off many of its non-core assets to focus on metals distribution and processing. As part of this process, the company renamed itself as Russel Metals Inc. in 1995.
After a 1997 proxy battle involving businessman
K. Rai Sahi, John Fraser and CEO John Pelton resigned, and the company narrowed its focus on metals under new CEO Bud Siegal.
In 2007, Russel acquired JMS Metal Products, a U.S. metals distributor, for $125 million. In 2009, the company experienced significant losses as part of the great recession and laid off 500 of its 3,000 employees. In 2012, the company acquired Apex Distribution, a Calgary-based metals distribution business focusing on the oil and gas industry.
Business
Russel Metals primarily operates metal distribution and service centres for customers in the oil and gas, manufacturing, and construction industries.
It has three business segments: metals service centres, energy products, and steel distributors. As of 2017, 49% of revenue was from the service centres, 39% was from energy products, and the rest was from steel distribution.
It has sites in both Canada and the United States, with most sites located in Canada,
and derives roughly 30 per cent of its revenues from the United States.
References and footnotes
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Companies based in Mississauga
Companies listed on the Toronto Stock Exchange
Metal companies of Canada