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
FGM-Pacesetter expands into Houston with NSPS Metals deal
Flack Global Metals (FGM) announced Thursday that it would expand into Texas by assuming the Houston operations of NSPS Metals.
Ryerson reports net loss in Q3 as weak demand offsets tariff price support
President and CEO Eddie Lehner said Ryerson has faced market headwinds in the third quarter.
HARDI: Galv demand improves in October, higher prices expected in new year
Participants on this month’s Heating Air-Conditioning & Refrigeration Distributors International (HARDI) Sheet Metal/Air Handling Council call expect galvanized steel base prices to firm up in the first quarter of 2026.
Global steel production falls to near two-year low in September
World crude steel output declined for the fourth-consecutive month in September, slipping 3% from August to an estimated 141.8 million metric tons (mt), according to the latest figures from the World Steel Association (worldsteel).
Market sources say regional activity is dictating plate demand
Demand for plate on the spot market remains soft by comparison to years past. However, this week regional demand variations grew more pronounced.