Reliance Steel & Aluminum Co.
) impending acquisition of
Metals USA Holdings Corp.
) has been cleared by the latter's shareholders.
Shareholders holding 87.3% of Metals USA's outstanding shares
voted in favor of the deal at a special stockholders' meeting.
Metals USA expects the transaction to complete after close of
business on Apr 12, subject to the satisfaction/waiver of the
earlier disclosed closing conditions.
Reliance Steel, in Feb 2013, landed an agreement to acquire all
outstanding shares of Metals USA for $20.65 per share in cash.
Pursuant to the merger agreement, RSAC Acquisition Corp., a
fully-owned subsidiary of Reliance Steel, will merge with Metals
USA. Following the deal closure, Metals USA will operate as a
wholly-owned subsidiary of Reliance Steel.
Metals USA makes steel and aluminum components and had assets
worth $1 billion and sales of $2 billion at the end of 2012. With
the acquisition, Reliance Steel will add about 48 service
centers, which are strategically located throughout the U.S., to
its existing operations.
Metals USA is a strategic fit with Reliance Steel's portfolio and
complements its existing customer base, product mix and
geographic footprint. The transaction is expected to be accretive
to Reliance Steel's earnings immediately upon closing.
Reliance Steel has a broad and diversified product base along
with a wide geographic footprint that positions it well in the
industry. The company continues to evaluate and execute
additional growth projects and is well placed to leverage the
strong momentum across a number of end markets.
However, Reliance Steel contends with weak steel and metals
pricing environment. Moreover, the non-residential construction
market (the company's largest end market) continues to be the
Reliance Steel currently holds a Zacks Rank #3 (Hold).
Other companies in the metals industry worth considering are
Gibraltar Industries Inc.
Worthington Industries Inc.
). While Gibraltar holds a Zacks Rank #1 (Strong Buy),
Worthington carries a Zacks Rank #2 (Buy).
METALS USA HLDG (MUSA): Free Stock Analysis
GIBRALTAR INDUS (ROCK): Free Stock Analysis
RELIANCE STEEL (RS): Free Stock Analysis
WORTHINGTON IND (WOR): Free Stock Analysis
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