Metals USA

(MUSA) - Get Report

agreed to be acquired by affiliates of private investment firm Apollo Management, and the news of the buyout catapulted other stocks in the steel and metals industry higher Wednesday.

Under the terms of the agreement, Metals USA shareholders will receive $22 in cash for each share they own. The transaction will be financed through a combination of equity contributed by Apollo and debt financing. The board of Metals USA approved the merger and recommended that shareholders vote in favor of the deal.

Shares of Metals USA, a metals processor and distributor, were higher by $7.11, or 51%, to $21. The stock closed the prior session at $13.89 and has a 52-week range of $12.36 to $25.85.

Members of Metals USA's management, including C. Lourenco Goncalves, president and CEO, will remain with the company after the buyout closes and hold equity in the new company.

Apollo aims to complete the transaction in the third quarter. Affiliates of Citadel Investment Group, which collectively own about 16% of the common stock of Metals USA, have signed a separate agreement with an affiliate of Apollo and agreed to vote their shares in favor of the merger.

Elsewhere in the sector, stocks were being bid sharply higher. Among

Nasdaq

issues,

Olympic Steel

(ZEUS) - Get Report

was gaining $3.84, or 28%, to $17.48.

Metal Management

( MTLM) was up $2.40, or 13%, to $20.25, and

Schnitzer Steel

(SCHN) - Get Report

was rising $2, or 8%, to $25.64.

Wheeling-Pittsburgh

( WPSC) was adding $2.16, or 12%, to $19.87, and

Insteel Industries

(IIIN) - Get Report

was also up 12%.

On the

New York Stock Exchange

,

AK Steel

(AKS) - Get Report

rose $1.05, or 15%, to $8.12, and

Reliance Steel & Aluminum

(RS) - Get Report

climbed $3.30, or 9%, to $39.92.

Oregon Steel Mills

( OS) was higher by 11% to $16.69,

Ryerson Tull

(RT)

had a 12% gain to $15.75, and

Earle M. Jorgensen

( JOR) was up 14% to $7.90.