MRC Global Inc., a prominent supplier of pipe, valve, and fitting products and services, announced on Monday that its subsidiary, MRC Global (Canada) ULC, has finalized an agreement to sell its Canadian operations to Emco Corporation. The transaction is set to be completed in the first half of 2025, with the company planning to utilize the proceeds to reduce its debt obligations.
Rob Saltiel, CEO of MRC Global, stated, "This divestiture will enable us to realign our strategic emphasis and guide our future capital investment decisions towards our core geographies and product lines that promise the highest growth and profit potential. The sale of our Canadian business is anticipated to enhance our overall company adjusted gross margins and adjusted EBITDA margins."
Following this transaction, MRC projects that it will incur a pre-tax, non-cash loss from discontinued operations amounting to approximately $25 million in the fourth quarter.
