MRC Global Announces Sale of Its Canada Business Operations

17 Dec, 2024

MRC Global Inc. (NYSE: MRC) has announced that its subsidiary, MRC Global (Canada) ULC, has entered into a definitive agreement to sell its Canada operations to Emco Corporation. This strategic decision allows MRC Global to focus on core geographies and product offerings with the highest growth and profit potential. Rob Saltiel, President and CEO of MRC Global, emphasized the importance of this move in enhancing the company’s adjusted gross margins and EBITDA margins.

The divestiture reflects MRC Global’s strategic commitment to refining its business priorities. Mr. Saltiel expressed gratitude to the Canada team for their contributions and stated confidence in Emco Corporation’s ability to sustain success for employees and customers. The sale is expected to close in the first half of 2025, pending customary closing conditions and Canadian regulatory approval. A pre-tax, non-cash loss of approximately $25 million will be recorded in Q4 2024. 

CIBC acted as financial advisor for MRC Global, with Norton Rose Fulbright providing legal counsel. McCarthy Tétrault LLP served as Emco Corporation’s legal advisor. Headquartered in Houston, Texas, MRC Global is a leading distributor of pipe, valves, and fittings with over a century of industry expertise and a global network of more than 200 locations. The company’s innovative supply chain solutions and technical expertise have cemented its leadership in diversified end markets.

This forward-looking move aligns with MRC Global’s focus on long-term growth. While the transaction is subject to various risks and uncertainties, the company believes it is a strategic step toward optimizing its operations and delivering enhanced value to its stakeholders.

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