Apollo-Backed Metals USA to Merge with Reliance Steel
February 11, 2013
Metals USA (NYSE: MUSA) has signed a definitive merger agreement with Reliance Steel & Aluminum (NYSE: RS) in which Reliance will acquire all outstanding MUSA shares for $20.65 per share. The all-cash transaction would represent an enterprise value of approximately $1.2 billion. Apollo Global Management owns approximately 53% of Metal USA's outstanding shares, and has agreed to vote in favor of the merger. The transaction is expected to close in the second quarter of 2013. Apollo took the company private in 2005 and has gradually recouped its investment since, selling a 31.4% stake in a 2010 IPO and another 10.8% stake in a 2012 secondary offering.