Metals USA, Inc.
Ticker:MUI 4801 Woodway Drive, Suite 300E
Exchange:New York Stock Exchange Houston, TX 77056
Industry:Wholesale (SIC Code 5051) (713) 964-2713

Offering Information
Type of Shares:Common Shares Filing Date:5/7/97
U.S. Shares:5,900,000 Offer Date:7/10/97
Non-U.S. Shares:0 Filing Range:$12.00 - $14.00
Primary Shares:5,900,000 Offer Price:$10.00
Secondary Shares:0 Gross Spread:$0.70
Offering Amount: $76,700,000 Selling:$0.40
Expenses:$4,000,000 Reallowance:$0.10
Shares Out After:20,782,023

Primary Underwriting Group
ManagerTierPhone
Alex. Brown & Sons IncorporatedLead Manager (410) 895-2700
Bear, Stearns & Co. Inc.Co-manager (212) 272-4850
Sanders Morris Mundy Inc.Co-manager (713) 250-4281

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Bracewell & Patterson
Bank's Law Firm: Piper & Marbury
Auditor: Arthur Andersen

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 12/31/96
Revenue:$387.04Assets:$241.05
Net Income:$9.34Curr Assets:
EPS:$0.48Liabilities:$173.82
Prior EPS:Curr Liabilities:
Cash Flow/Oper:Equity:$67.23
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company is a leading national value-added metals processor/service center, to manufacture higher-value components from processed metals and to pursue aggressivley the consolidation of highly-fragmented metals processing industry. The company believes that the metals processor/service center industry in the United States is consolidating and currently has as many as 3,500 participants collectively generating over $50 billion in annual revenues. The company intends to play a major role in the consolidation of this industry by combining a broad-based group of metals processing and manufacturing companies. To be a leader in the consolidation of the metals processing industry, the company will be required to acquire and deploy the capital-intensive equipment and technology necessary to meet rapidly changing customer requirements. The company engages in the preproduction processing of steel, aluminum and specialty metals and intends to capitalize on trends occurring among both primary metals producers are focusing on their core competencies of high-volume production of a limited number of standardized metal products, and are limiting or eliminating their processing services.

Use of Proceeds
The proceeds from the proposed offering will be used to pay the cash portion of the purchase price for the Founding Companies, to repay expenses incurred in connection with the organization of Metals USA and the offering, for general corporate purposes including future acquisitions.

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