Russel Metals to buy Norton Metal Products for $70 million (Russel-Metals)

TORONTO _ Metals distributor Russel Metals Inc. (TSX:RUS) said Monday it has agreed to buy a privately held Texas metals service centre for an undisclosed amount.

The Toronto-based company said it will acquire Norton Metal Products Inc. in a stock purchase agreement. The general line steel distribution centre operator in Fort Worth, Texas, made $70 million in revenue over the 12 months ended Sept. 30.

``This acquisition increases our geographic presence in the southern United States,'' Russel chief operating officer Brian Hedges said in a statement.

``The Norton reputation in the Dallas-Fort Worth area is a valuable asset and we will continue to use the Norton name in the future.''

The deal is expected to close Nov. 28.

Russel stock was up $1.26 or 5.8 per cent at $22.97 in midday trading at the Toronto Stock Exchange.

INDEX: BUSINESS INTERNATIONAL MANUFACTURING METALS