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
was gaining $3.84, or 28%, to $17.48.
( MTLM) was up $2.40, or 13%, to $20.25, and
was rising $2, or 8%, to $25.64.
( WPSC) was adding $2.16, or 12%, to $19.87, and
was also up 12%.
New York Stock Exchange
rose $1.05, or 15%, to $8.12, and
Reliance Steel & Aluminum
climbed $3.30, or 9%, to $39.92.
Oregon Steel Mills
( OS) was higher by 11% to $16.69,
had a 12% gain to $15.75, and
Earle M. Jorgensen
( JOR) was up 14% to $7.90.