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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