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FORT LAUDERDALE, Fla.,
March 11, 2011 /PRNewswire/ -- Metals USA Holdings Corp. ("Metals USA") (NYSE: MUSA), a leading provider of processed carbon steel, stainless steel, aluminum and other metals, today announced that it has closed the acquisition of The Richardson Trident Company ("Trident").
The acquisition of Trident represents Metals USA's third acquisition since its IPO last April. With sales for the twelve months ending
December 31, 2010 at approximately
$148 million on 23,000 shipped tons, Trident is also the largest company acquired by Metals USA so far. With the addition of Trident's eight processing centers located in
Massachusetts, Metals USA significantly increases its geographic coverage toward desired target markets in the Southeast, South central, Northeast and the West Coast of
the United States.
Founded in 1962, we believe Trident is a highly regarded provider of value added non-ferrous products, supplying a host of services such as precision sawing, boring, honing, slitting, sheeting, shearing and tuning. In 2010, aluminum, stainless steel and nickel sales represented 39%, 19% and 17% of Trident's revenues, respectively.
The majority of Trident's revenues are generated by supplying products to a blue chip customer base in the fast growing and highly profitable Oil & Gas field services market. Trident also has significant exposure to other attractive sectors such as aerospace, defense and transportation. This acquisition significantly enhances Metals USA's position and market-share within these four sectors.
Lourenco Goncalves, Chairman, President, and C.E.O. of Metals USA, stated: "We believe that Trident embodies all the elements we look for in our ideal acquisition target: a high value added processing and service oriented business, superior profitability through the cycle, a first rate reputation in the market, a defensible market position, and a high quality employee base."
Mr. Goncalves continued: "As we capture synergies by taking advantage of our combined purchasing activities and expand our scale with key suppliers and blue chip customers, we believe we can further enhance Trident's already attractive profitability. Trident's high EBITDA margin should average up Metals USA's overall EBITDA margin."