MRC Global Announces Divestiture of Canada Business to Emco

MRC Global Inc. MRC recently entered into a deal to divest its Canada business to Emco Corporation. The financial terms of the transaction have been kept under wraps.Based in London, Emco is engaged in providing products and services for plumbing, waterworks, HVAC, irrigation, industrial, fire protection and oilfield supply projects. The company has a network of more than 250 profit centers.The divestment of the Canada business will help MRC Global to focus on its core businesses while supporting its capital allocation priorities. It supports the company’s strategy to focus on key regions and product offerings that offer the greatest potential for growth and profitability. MRC expects to use the cash proceeds of the transaction, net of modest taxes, to reduce its debt. The divestiture is expected to positively impact the company's adjusted gross margins and adjusted EBITDA margin.The transaction is expected to close in the first half of 2025, subject to closing approvals.MRC’s Zacks Rank and Price PerformanceAn increase in energy transition activities is benefiting the MRC Global’s Downstream, Industrial and Energy Transition sector. The company’s efforts to return value to shareholders add to its appeal.MRC currently carries a Zacks Rank #3 (Hold). In the past year, the stock has gained 21.5% compared with the industry’s 17.2% growth.Image Source: Zacks Investment ResearchMRC’s performance is being affected by weakness in the Gas Utilities and PTI sectors. While continued customer destocking and delayed project activity are affecting the Gas Utilities sector, a decrease in rig counts in the U.S. oil field due to the widespread consolidation of producers, particularly in the Permian Basin, is ailing the Production & Transmission Infrastructure sector.Stocks to ConsiderSome better-ranked companies are discussed below.Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 8.4%.RBC Bearings Incorporated RBC presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 2.5%.In the past 60 days, the consensus estimate for RBC’s fiscal 2025 earnings has increased 0.5%.Kadant Inc. KAI presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 17.2%. The Zacks Consensus Estimate for KAI’s 2024 earnings has increased 1.8% in the past 60 days.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RBC Bearings Incorporated (RBC): Free Stock Analysis Report Kadant Inc (KAI): Free Stock Analysis Report MRC Global Inc. (MRC): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks