MRC Global Inc. announced on December 16, 2024, that its subsidiary, MRC Global (Canada) ULC, has entered into a definitive agreement to sell its Canada operations to Emco Corporation. This divestiture is a strategic move to reposition the company's focus and future capital investment decisions on its core geographies and product offerings that offer the strongest growth and profit potential.
The sale of the Canada business is expected to be accretive to MRC Global's total company adjusted gross margins and adjusted EBITDA margins. As a result of the anticipated 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 transaction is anticipated to close in the first half of 2025, subject to customary closing conditions and required Canadian regulatory approval. MRC Global plans to utilize the proceeds from this sale for the reduction of its debt, further strengthening its balance sheet.
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