Reliance Steel & Aluminum

(RS) - Get Report

reached a deal to buy metals distributor

Earle M. Jorgensen

( JOR) for $13 a share in cash and stock.

The acquisition price represents a premium of 24.6% to Jorgensen's Wednesday close at $10.43. Jorgensen's shares were lately up $2.60, or 24.9%, to $13.03. The stock has a 52-week range of $6.52 to $11.

The takeover values Jorgensen around $711 million, Reliance said, but it's worth roughly $934 million including the assumption of debt. Both companies are based in Southern California. Reliance said the deal will immediately add to its earnings and should close in the second quarter.

Reliance said it will have annual revenue of more than $5 billion after finishing the transaction. Shares of Reliance were gaining $1.40, or 2.1%, to $67.15.