MRC Global Inc. (NYSE: MRC) has announced the sale of its Canada operations to Emco Corporation. The sale is expected to be accretive to the company's total company adjusted gross margins and adjusted EBITDA margins. As a result of the 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. Canadian Imperial Bank of Commerce (CIBC) acted as the financial advisor to MRC Global, while Norton Rose Fulbright acted as legal counsel to MRC Global, and McCarthy Tétrault LLP acted as legal advisor to Emco. The company plans to use the proceeds from the sale for the reduction of debt.
MRC Global, headquartered in Houston, Texas, is the leading global distributor of pipe, valves, fittings (PVF), and other infrastructure products and services. It has over 100 years of experience and provides customers with innovative supply chain solutions, technical product expertise, and a robust digital platform from a worldwide network of over 200 locations, including valve and engineering centers. The company's quality assurance program offers over 300,000 SKUs from over 8,500 suppliers, simplifying the supply chain for approximately 10,000 customers.
The specific financial figures and metrics related to the sale, such as the change in adjusted gross margins and adjusted EBITDA margins, were not provided in the press release. For a more comprehensive financial analysis, it would be necessary to access the company's financial reports and disclosures. Following these announcements, the company's shares moved 1.4%, and are now trading at a price of $13.41. If you want to know more, read the company's complete 8-K report here.
