MRC Global to sell Canada business
MRC Global Inc. has announced its subsidiary, MRC Global (Canada) ULC, has entered into a definitive agreement to sell its Canada operations to Emco Corp.
Founded in 1906, Emco is a distributor of products for the construction industry.
“This divestiture will reposition our strategic focus and future capital investment decisions on our core geographies and product offerings that provide the strongest growth and profit potential," said MRC Global President & CEO Rob Saltiel. "The sale of our Canada business is expected to be accretive to our total company adjusted gross margins and adjusted EBITDA margins.
“I would like to express my appreciation to our Canada team members who have consistently provided exceptional value to our customers. We believe we have found the right home for the Canada business and that Emco Corp. is well equipped to maintain success for our employees and customers into the future."
As a result of the expected sale, a pre-tax, non-cash loss on discontinued operations of approximately US $25 million is expected to be recorded in the fourth quarter of 2024. The sale is anticipated to close in the first half of 2025 following customary closing conditions and required Canadian regulatory approval. The company plans to use the proceeds for reduction of debt.