Reliance Buying Metals USA For About $766.1M
LOS ANGELES (AP) -- Reliance Steel & Aluminum Co. is buying Metals USA Holdings Corp. for about $766.1 million.
Reliance said Wednesday that it will pay $20.65 per Metals USA share. That's a 13 percent premium to Tuesday's closing price of $18.30.
The companies put the deal's total value at around $1.2 billion.
Metals USA has about 37.1 million shares outstanding, according to FactSet. Its stock jumped 13 percent in premarket trading. Reliance rose nearly 4 percent.
The agreement includes a 30-day "go-shop" period that allows Metals USA to seek alternative bids.
Reliance Chairman and CEO David Hannah will remain in those posts in the combined company.
Metals USA Chairman, President and CEO Lourenco Goncalves will retire once the buyout is complete, which is expected in the second quarter.