Reliance Steel & Aluminum Co said on Tuesday it has reached an agreement to acquire for about $1.1 billion PNA Group Holding Corp, a national steel service center group owned by private equity firm Platinum Equity.
PNA has 23 steel service centers throughout the United States, as well as five joint ventures that operate a total of seven service centers in the United States and Mexico. PNA processes and distributes primarily carbon steel plate, bar, structural and flat-rolled products.
Reliance said it expects to finance the deal, including the replacement of PNA's existing debt, through a combination of borrowings under Reliance's existing credit facility and by raising about $750 million through the issuance of a combination of new debt and equity securities.
The transaction is expected to close within the next 60 days, Reliance said in a statement. It said the deal should immediately add to earnings. (Reporting by Euan Rocha, editing by Gerald E. McCormick)
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