Steel Products
Reliance Steel & Aluminum to Acquire Metals USA Holdings
Written by John Packard
February 8, 2013
Reliance Steel & Aluminum announced Wednesday morning a definitive merger agreement whereby Reliance will acquire all outstanding shares of Metals USA Holdings Corporation for approximately $1.2 billion. This will make Reliance the largest service center chain in North America with assets over $6.5 billion and annual sales in excess of $10.0 billion.
The transaction is subject to approval by Metals USA stockholders along with other regulatory clearances and customary closing conditions and includes a 30-day “go-shop” period.
David Hannah, Chairman and CEO of Reliance, will continue as the Chairman and CEO of the combined company. Lourenco Goncalves, Chairman, President and CEO of Metals USA will retire upon the closing of the transaction which is expected during the second quarter 2013. The rest of the Metals USA management team will remain intact and continue to operate the company.
The addition of the Metals USA service centers will add 48 locations to the Reliance existing distribution network and are strategically located throughout the United States. Reliance plans to operate the Metals USA plants under its current brand names.
The acquisition will take the percentage of Reliance flat rolled business up a few percentage points, according to comments made by David Hannah, CEO of Reliance during a conference call with analysts announcing the acquisition. The expectation is for Reliance business mix to be approximately 15 percent flat rolled when Metals USA business is added to the group.
Combined, Reliance will encompass approximately 6-7 percent of the total service center market based on remarks made by Mr. Hannah.
John Packard
Read more from John PackardLatest in Steel Products
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]
Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.
CRU: US stainless prices to rise on expanded S232 tariffs
Stainless prices in the US market will rise, following price increases by major US producers. Our base case scenario incorporates higher US prices in the near term, despite the initial negative reaction by the market. US stainless prices will go up in 2025 H2 and will stay elevated in 2026 as tariffs on stainless […]
Galvanized steel demand unsteady amid lingering buyer fatigue: HARDI
Uneven demand for galvanized steel in June reflects a market that remains mired in uncertainty, according to industry sources.
OCTG industry salutes Customs for catching trade crooks
The US OCTG Manufacturers Association is commending US Customs for intercepting another Thai company's attempt to illegally transship Chinese oil pipe to the US.