Metals USA Holdings Corp. Acquires The Richardson Trident Company

FORT LAUDERDALE, Fla., March 11, 2011 /PRNewswire/ -- Metals USA Holdings Corp. ("Metals USA") (NYSE: MUSA), a leading provider of processed carbon steel, stainless steel, aluminum and other metals, today announced that it has closed the acquisition of The Richardson Trident Company ("Trident").

The acquisition of Trident represents Metals USA's third acquisition since its IPO last April. With sales for the twelve months ending December 31, 2010 at approximately $148 million on 23,000 shipped tons, Trident is also the largest company acquired by Metals USA so far. With the addition of Trident's eight processing centers located in Texas, Oklahoma, Georgia, California, and Massachusetts, Metals USA significantly increases its geographic coverage toward desired target markets in the Southeast, South central, Northeast and the West Coast of the United States.

Founded in 1962, we believe Trident is a highly regarded provider of value added non-ferrous products, supplying a host of services such as precision sawing, boring, honing, slitting, sheeting, shearing and tuning. In 2010, aluminum, stainless steel and nickel sales represented 39%, 19% and 17% of Trident's revenues, respectively.  

The majority of Trident's revenues are generated by supplying products to a blue chip customer base in the fast growing and highly profitable Oil & Gas field services market. Trident also has significant exposure to other attractive sectors such as aerospace, defense and transportation. This acquisition significantly enhances Metals USA's position and market-share within these four sectors.  

Lourenco Goncalves, Chairman, President, and C.E.O. of Metals USA, stated: "We believe that Trident embodies all the elements we look for in our ideal acquisition target: a high value added processing and service oriented business, superior profitability through the cycle, a first rate reputation in the market, a defensible market position, and a high quality employee base."

Mr. Goncalves continued: "As we capture synergies by taking advantage of our combined purchasing activities and expand our scale with key suppliers and blue chip customers, we believe we can further enhance Trident's already attractive profitability. Trident's high EBITDA margin should average up Metals USA's overall EBITDA margin."  

Mr. Goncalves concluded by saying: "We believe that we have acquired Trident at an attractive valuation on a cycle average basis, and expect Trident's contribution to be immediately accretive to Metals USA's results."  

Mike Cooney, Metals USA's President of Non-Ferrous, will relocate to Dallas assuming direct responsibility for Trident's operations while continuing to lead all of Metals USA's non-ferrous business.  Metals USA will operate the newly acquired business under its current name, The Richardson Trident Company.

About Metals USA

Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets.  For more information, visit the Company's website at www.metalsusa.com.  The information contained in this release is limited and the Company encourages interested parties to read the Company's historical Form 10-Ks and Form 10-Qs which are on file with the Securities and Exchange Commission for more complete historical information about the Company.  Additionally, copies of the Company's filings with the Securities and Exchange Commission, together with press releases and other information investors may find of interest, can be found at the Company's website at www.metalsusa.com under "Investor Relations."

CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements within the meaning of the federal securities law which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause the actual results, performance or achievement of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements.  Such statements include, but are not limited to, statements concerning the future performance of the acquired business, the integration of the acquired business into the Company's operations, anticipated synergies, the Company's financial performance, and the Company's future acquisitions and execution of its growth strategy.  Factors that could cause the Company's results to differ materially from actual results or current expectations include, but are not limited to, unanticipated liabilities associated with the acquired business, the loss of key customers of the acquired business; changes in metal prices, the effect of economic conditions generally in the regions in which the acquired business operates, in the United States and international economies and within major product markets, including a prolonged or substantial economic downturn; the effect of consolidation or other actions of our suppliers or suppliers of the acquired business, or other disruptions in our sources of supply; increased competition and the other factors detailed in the Company's Registration Statement on Form S-1 relating to its IPO under the caption "Risk Factors" and other reports filed with the Securities and Exchange Commission.  In addition, these statements are based on a number of assumptions that are subject to change.  This press release speaks only as of this date and the Company disclaims any duty to update the information herein.

SOURCE Metals USA Holdings Corp.