Strategic Buyers: Reliance Steel Picks Up Metals USA
The $1.2B deal will give Reliance 48 more service centers
Reliance Steel & Aluminum Co. (NYSE: RS) is buying Metals USA Holdings Corp. (NYSE: MUSA) for about $1.2 billion.
The target, headquartered in Fort Lauderdale, Fla., produces heavy carbon steel, flat-rolled steel, non-ferrous metals and other building products.
Los Angeles-based Reliance process metals and distributes a line of more than 100,000 metal products.
Metals had about $2 billion in sales for 2012. The agreement is subject to a 30-day period where Metals can solicit other offers.
The deal will give Reliance 48 more service centers. The company expects to have annual sales of more than $10 billion after the transaction closes, which is expected to happen in the second quarter of 2013.
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