Reliance Steel & Aluminum Co. will buy Earle M. Jorgensen Co. for nearly $650 million in cash and stock, a deal that will add 39 metal processing facilities in the U.S. and Canada to its business and sharply increase its annual revenue.
L.A.-based Reliance said the $13 a share cash-and-stock deal, which was a 25 percent premium to Lynwood-based EMJ’s share price as of Jan. 17, would immediately add to its earnings once completed. It will also assume about $291 million in Jorgensen debt. The deal is expected to be finalized in the second quarter of 2006.
