Metals distribution company Russel Metals closed the acquisition of Apex Distribution and related companies according to a press release Thursday. Apex Distribution is a leading Canadian oilfield supply company predominantly servicing the Western Canadian oil and gas industry and the Saskatchewan potash market.
Russel Metals explained in late October that the total purchase price will include a cash payment to shareholders, debt reduction and a five year earnout. The $225 million cash payment at closing will consist of approximately $175million to shareholders and approximately $50 million to extinguish Apex Distribution's net debt. The earnout will be paid over five years based on earnings before interest and taxes and return on net assets.