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.