Reliance to buy Metals USA for $1.2B
Feb 06, 2013 | 03:58 PM
| Corinna Petry
CHICAGO In a surprise move, Reliance Steel & Aluminum Co. and Metals USA Holdings Corp. have agreed to merge in a roughly $1.2-billion deal.
It is Reliances largest acquisition to date, and will give the Los Angeles-based distributor a 6- to 7-percent share of the U.S. service center market, chairman and chief executive officer David H. Hannah told investors during a Feb. 6 conference call.
The all-cash transactionwhich has Reliance purchasing Metals USA shares at $20.65 eachis expected to close in the second quarter, at which point Reliance will hold total assets exceeding $6.5 billion with annual sales above $10 billion. Each companys board of directors has already approved the deal.....
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