Reportedly Reliance Steel & Aluminum Co. has planned to invest US$766 million in acquisition of Metals USA Holdings Corp. in attempt to develop high-margin business of cutting and customizing metals.

The acquisition of Metals USA will add 48 facilities to Reliance’s existing network of 220 and lift its share in the market up to 8% from 6%.

Analysts also pointed that Metals USA’s current business in heavy plates that goes into military applications will help expand the new product market for Reliance.

Diverse customer base has largely insulated the company from the global recession and sustain the bigger-than-expected quarterly profits.

Reliance Chief Executive David Hannah said Metals USA is fit and nicely complements Reliance’s existing customer base, product mix and geographic footprint.