NEW YORK Reliance Steel
& Aluminum Co. will acquire competitor Metals USA Holdings
Corp. for about $1.2 billion in cash, the companies announced
jointly Feb. 6.
The transaction, which has been
unanimously approved by both companies boards, is still
subject to regulatory clearances and approval by Metals USA
stockholders and includes a 30-day shopping period during which
Metals USA could solicit alternate acquisition proposals. If
approved, the deal is expected to close in the second quarter,
the distributors said.
David H. Hannah, chairman and
chief executive officer of Los Angeles-based Reliance, will
hold the same position in the combined company, while Metals
USA chairman, president and chief executive officer Lourenco
Goncalves will retire upon closing of the deal.
"This is our largest acquisition
to date and will add a total of 48 service centers
strategically located throughout the United States to our
existing operations," Hannah said in a statement.
Reliance plans to operate Fort Lauderdale, Fla.-based Metals
USA under its existing brand names, it said.