Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Reliance Steel & Aluminum To Buy Metals USA For About $1.2 Bln - Quick Facts

RELATED NEWS
Trade RS now with 

Reliance Steel & Aluminum Co. (RS: Quote) announced Wednesday that it agreed to acquire Metals USA Holdings Corp. (MUSA: Quote) for $20.65 per share in cash, representing an enterprise value of approximately $1.2 billion.

Reliance and Metals USA's Boards have unanimously approved the transaction.

The transaction is subject to approval by Metals USA stockholders, along with the receipt of regulatory clearances and the satisfaction of other customary closing conditions, and includes a 30-day "go-shop" period.

David Hannah, Chairman and Chief Executive Officer of Reliance, will continue as Chairman and Chief Executive Officer of the combined company.

Lourenco Goncalves, Chairman, President and Chief Executive Officer of Metals USA will retire upon closing of the transaction.

Reliance said it plans to operate Metals USA under its current brand names.

Reliance noted that it expects to fund the transaction and refinance Metals USA's existing indebtedness from Reliance's existing $1.5 billion credit facility, together with funds from accessing the bank credit markets, as well as the debt capital markets.

The merger agreement permits Metals USA to solicit alternative acquisition proposals from third parties through March 8, 2013, and Metals USA intends to do so with the assistance of its financial and legal advisors.

If the merger agreement is terminated under certain circumstances relating to an alternative transaction, Reliance will be entitled to receive a termination fee from Metals USA.

Investment funds affiliated with Apollo Global Management, LLC (APO: Quote), which own approximately 53% of the outstanding shares of Metals USA common stock, have entered into a Voting Agreement pursuant to which they have agreed to vote in favor of the merger.

Metals USA's assets at December 31, 2012 and sales for the year then ended were approximately $1.0 billion and $2.0 billion, respectively. Upon completion of the acquisition, Reliance will have total assets of over $6.5 billion and annual sales of over $10.0 billion.

The transaction is expected to close in the second quarter of 2013.

Register
To receive FREE breaking news email alerts for Reliance Steel & Aluminum and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
The United Nations Security Council has long been a bastion for men selected to represent their countries on what is considered to be the Organization's most powerful body. But now, women ambassadors are occupying more than one third of the Council's 15 seats, making history with record representation of the gender. "It's a little strange that it's taken us this long," according to Ambassador Syl Yukiya Amano, Director General of the International Atomic Energy Agency (IAEA), said Monday that nuclear programs of the Democratic People's Republic of Korea (DPRK) and Iran remain matters of serious concern. The head of the United Nations nuclear watchdog made the remarks at the opening of the... Stocks largely turned in a lackluster performance during trading on Monday, as traders looked ahead to the Federal Reserve's monetary policy announcement later this week. Technology stocks saw significant weakness, however, resulting in a sharp drop by the tech-heavy Nasdaq.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.