US metal processor Reliance Steel to buy Metals USA for $766 million
07 Feb 2013
US metals processor Reliance Steel & Aluminum Co today agreed to buy Metals USA Holdings Corp for $766 million in cash, in which private equity firm Apollo Global Management holds 53 per stake.
Reliance will acquire Metals USA for $20.65 per share, representing an enterprise value of approximately $1.2 billion.
Reliance 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.
Florida-based Metals USA is a provider of processed carbon steel, stainless steel, aluminum, red metals and manufactured metal components.
It is one of the largest metal service centre businesses in North America and a leading provider of value-added metal processing and inventory management services.
Its value added services, include cutting, sawing, punching, shot blasting, surface grinding and drilling, which allows it to earn a premium over the cost of metal.