LOS ANGELES--(BUSINESS WIRE)--
Reliance Steel & Aluminum Co. (NYSE: RS) (“Reliance”) today announced
that it has completed the previously announced acquisition of Metals USA
Holdings Corp. (“Metals USA”) for $20.65 per share in cash, pursuant to
which Metals USA has become a wholly-owned subsidiary of Reliance. This
acquisition adds a total of 48 service centers strategically located
throughout the United States to Reliance’s existing operations and
complements its existing customer base, product mix and geographic
footprint.
The purchase price for Metals USA was $786 million paid in cash at
closing for the holders of Metals USA stock, options and restricted
stock, and the assumption of $454 million of net debt, representing a
Metals USA enterprise value of approximately $1.24 billion. Reliance
funded the transaction and refinanced Metals USA indebtedness with a
combination of proceeds from its amended $1.5 billion credit facility
and new $500 million term loan along with proceeds from its $500 million
senior notes offering that was completed last week. Based upon
Reliance’s outstanding borrowings as of March 31, 2013, Reliance’s net
debt-to-total capital ratio, on a pro forma basis giving effect to the
acquisition of Metals USA and the financing thereof, would have been
approximately 39%.
“We are very pleased to welcome Metals USA to the Reliance family of
companies,” said David H. Hannah, Chairman and Chief Executive Officer
of Reliance. “This transaction is expected to be immediately accretive
and we believe that the combined company is well positioned to continue
to outperform the broader metals service center industry.”
Effective with the closing, Lourenco Goncalves retired as Chairman,
President and Chief Executive Officer of Metals USA. Robert C. McPherson
III will be promoted to President and Chief Executive Officer of Metals
USA. In addition, Roger Krohn will be promoted to Senior Vice President
and Chief Operating Officer of Metals USA.
“We congratulate Reliance on its acquisition of Metals USA. It has been
Apollo’s pleasure to work with Metals USA and the management team and we
are very proud of what we have been able to collectively accomplish. The
sale of Metals USA concludes a successful investment for Apollo,” said
M. Ali Rashid, Senior Partner at Apollo Global Management (NYSE: APO),
which was the majority stockholder of Metals USA.
Further information regarding this transaction will be presented during
Reliance’s first quarter 2013 conference call on Thursday, April 25,
2013 at 11:00 a.m. Eastern Time. The call will be broadcast live over
the Internet hosted on the Investor Information section of Reliance’s
website at www.rsac.com.
About Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California,
is the largest metals service center company in North America (U.S. and
Canada). Through a network of more than 290 locations in 39 states and
10 countries outside of the United States, Reliance provides value-added
metals processing services and distributes a full line of over 100,000
metal products to more than 125,000 customers in a broad range of
industries.
About Metals USA
Metals USA provides a wide range of products and services in the heavy
carbon steel, flat-rolled steel, non-ferrous metals, and building
products markets.
Forward-Looking Statements
Certain statements in this press release may constitute
“forward-looking” statements, as defined under the Private Securities
Litigation Reform Act of 1995. Words such as “expects,” “anticipates,”
“intends,” “plans,” “projects,” “believes,” “estimates,” “forecasts” and
similar expressions are used to identify these forward-looking
statements. Forward-looking statements in this press release include,
but are not limited to, statements concerning the acquisition of Metals
USA Holdings Corp. and the performance of the combined company.
Forward-looking statements are based upon assumptions as to future
events that may not prove to be accurate. These statements are not
guarantees of future performance and involve risks, uncertainties and
assumptions that are difficult to predict. Actual outcomes and results
may differ materially from what is expressed or forecasted in these
forward-looking statements as a result of various important factors,
including, but not limited to, those disclosed in Reliance’s reports on
file with the Securities and Exchange Commission. As a result, these
statements speak only as of the date that they were made, and Reliance
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Additional risks and uncertainties relating
to Reliance and its business can be found in Reliance’s Annual Report on
Form 10-K for the year ended December 31, 2012.
Reliance Steel & Aluminum Co.
Brenda Miyamoto
Investor
Relations
213-576-2428
investor@rsac.com
or
Addo
Communications
310-829-5400
Source: Reliance Steel & Aluminum Co.