MRC Global announced Monday that it plans to sell its Canadian operations to one of that country’s leading construction distributors.
The Houston industrial product and PVF distributor said that its MRC Global (Canada) ULC subsidiary reached a definitive agreement for the sale of the business to London, Ontario-based Emco Corp.
Terms of the transaction were not disclosed.
MRC expects to report a $25 million pre-tax loss on discontinued operations in its next earnings report as a result of the sale. Officials said proceeds will go toward reducing MRC’s debt.
The deal is expected to close in the first half of next year, subject to customary closing conditions and approval by Canadian regulators.
MRC President and CEO Rob Saltiel said that the move would allow the company to focus its strategy — and spending decisions — on the geographies and product categories with the “strongest growth and profit potential.”
“I would like to express my appreciation to our Canada team members, who have consistently provided exceptional value to our customers,” Saltiel said in the announcement. “We believe we have found the right home for the Canada business and that Emco Corporation is well equipped to maintain success for our employees and customers into the future.”
Emco, founded as Empire Manufacturing Co. in 1906, says it is one of the Canadian construction sector’s oldest companies with a network of more than 250 “profit centres.”
