PRINT THIS PAGE Platinum Equity picks up Ryerson in $2bn deal25/07/2007. Source: AltAssets. 
 Platinum Equity has agreed to acquire Ryerson in a transaction valued at approximately $2bn. Under the terms of the agreement, Platinum Equity will acquire all of the outstanding shares of Ryerson common and convertible preferred stock for $34.50 per share.
The cash purchase price per share of $34.50 represents a 15 per cent premium over Ryerson's closing share price of $30.01 on 13 February 2007, the day prior to the announcement of the board's review of strategic alternatives and a 45 per cent premium over Ryerson's closing share price of $23.77 on 13 December 2006, according to a statement.
The firm stated that Ryerson's board of directors has unanimously approved the merger agreement and recommended approval of the transaction by Ryerson's stockholders.
Tom Gores, founder of Platinum Equity, commented, 'Ryerson has a great history and also great potential. It's a good fit for Platinum, which brings an operational focus that will help the company build value in the future.'
Ryerson is a distributor and processor of metals in North America, with 2006 revenues of $5.9bn. The company services its customers through a network of service centers across the US and in Canada, Mexico, India and China.
Platinum Equity specialises in the merger, acquisition and operation of companies that provide services and solutions to customers across a range of business markets, including information technology, telecommunications, industrials, logistics, manufacturing, and entertainment distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed 70 acquisitions with $16bn in aggregate annual revenue at the time of acquisition.
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