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Acquisition of Metals USA Holdings Corp. by Reliance Steel & Aluminum Co. May Not Be in Metals USA Holdings Corp. Shareholders' Best Interests

MUSA, RS
Acquisition of Metals USA Holdings Corp. by Reliance Steel & Aluminum Co. May Not Be in Metals USA Holdings Corp. Shareholders' Best Interests

SAN DIEGO and FORT LAUDERDALE, Fla., Feb. 8, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Metals USA Holdings Corp. (NYSE: MUSA) by Reliance Steel & Aluminum Co. (NYSE: RS).  Metals USA provides a wide range of carbon steel, stainless steel, aluminum, red metals, manufactured metal components, and inventory management services in the United States and Canada.

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

On February 6, 2013, Reliance Steel & Aluminum and Metals USA announced a definitive merger agreement whereby Reliance Steel & Aluminum will acquire all outstanding shares of Metals USA for $20.65 per share, representing a value of approximately $1.2 billion.  The transaction has been unanimously approved by the board of directors at both companies and is expected to close in the second quarter 2013.

The Board of Directors' Actions May Prevent Metals USA Shareholders from Receiving the Maximum Value for Their Stock

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Metals USA is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in light of the proposed acquisition.  The aforementioned offer price is below the $21.00 target price projected by an analyst at Sidoti & Co.   

Further, on February 6, 2013, Metals USA reported in a company press release $1,983.6 million in net sales for fiscal year 2012, compared to net sales of $1,885.9 million for fiscal year 2011.  Also, shipments for fiscal year 2012 totaled 1,550,000 tons, 11.0% higher than the 1,396,000 tons shipped during fiscal year 2011.

Given these facts, the firm is examining the board of directors' decision to sell Metals USA now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.   

Metals USA shareholders have the option to file a class action lawsuit against the company to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner.  Metals USA shareholders interested in information about their rights and potential remedies can contact Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law.  The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.  For more information, please go to http://www.robbinsarroyo.com.

Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/metals-usa-holdings-corp

Attorney Advertising. Past results do not guarantee a similar outcome.  

Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com

SOURCE Robbins Arroyo LLP



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