Reliance-Metals USA Merger (2013)
February-April 2013What Happened
Reliance Steel & Aluminum acquired Metals USA Holdings Corp. for $786 million in cash, assuming $454 million in debt for a total enterprise value of $1.24 billion. The deal added 48 service centers across the United States, making it Reliance's largest acquisition to date.
Outcome
Reliance generated 21.4% growth in tons sold in 2013 and produced $633 million in cash flow from operations, allowing rapid debt reduction despite challenging market conditions.
The acquisition cemented Reliance's position as the dominant North American service center and demonstrated that large service center combinations could deliver promised synergies through facility consolidation and purchasing scale.
Why It's Relevant Today
The Reliance-Metals USA merger is the most direct precedent for Ryerson-Olympic—a billion-dollar service center combination pursuing scale through network optimization. That deal's successful integration provides a template, though market conditions and tariff environment differ significantly.
