Reliance Steel & Aluminum raises $2 bn for Metals USA Holding acquisition
06 Apr 2013
Reliance Steel & Aluminum Co, North America's largest metals service centre company, today said that it has closed a $2-billion financing deal for its proposed Metals USA Holding Corp acquisition.
The Los Angeles-based company said that it has amended and restated its existing $1.5-billion unsecured revolving credit facility and raised $500 million in a new term loan.
The credit agreement has a term of five years and includes an increase option of the revolving credit facility for up to an additional $500 million.
David Hannah, chairman and CEO of Reliance Steel & Aluminum said, ''These financing transactions are a significant step in obtaining the financing necessary to complete our previously announced acquisition of Metals USA that we expect to close in the 2013 second quarter.''
In February, Reliance Steel & Aluminum had agreed to buy Florida-based Metals USA for $766 million in order to add 48 more distribution centers.
Post closing of the transaction, Reliance Steel & Aluminum will have total assets of over $6.5 billion and annual sales of over $10 billion.
Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets. It had 2012 sales of around $2 billion.
Reliance Steel & Aluminum provides value-added metals processing services and distributes a full line of over 100,000 metal products to more than 125,000 customers in a broad range of industries.
Its products include galvanised, hot-rolled and cold-finished steel, stainless steel, aluminum, brass, copper, titanium and alloy steel. Some of these metals service centers provide processing services for specialty metals only.
The company has a network of more than 240 locations in 38 states and ten countries outside of the US.
