Metals USA goes private

Metals USA goes private

Equity firm Apollo Management announced Wednesday, May 18, that it is buying metal processing and distributing company Metals USA for $447 million. Apollo is paying Metals USA shareholders 58% of premium, or $22 per share. The buyout will be financed by equity and debt. Metals USA has seen its fair share of ups and downs. Formed in 1996 through an 8-company merger, it went public in 1997. By 1999 it was the nation’s third largest distributor, but it fell into bankruptcy by 2001. The company that emerged from restructuring focused specifically on flat-rolled steel and aluminum; plates and shapes; and building products. Metals USA was assisted thereafter by a thriving industry. News of the acquisition sent its stock up 51% from Tuesday’s close.