Gerdau has finalized its sale of four U.S. mini-mills and nearly three dozen rebar fabrication shops to Texas based Commercial Metals Co.
With the acquisition completed, Commercial Metals officially takes control of Gerdau’s long products mills in Knoxville, Tennessee, Jacksonville, Florida, Sayreville, New Jersey and Rancho Cucamonga, California in addition to the 33 fabrication facilities.
“I am thrilled to welcome the approximately 3,200 employees of these operations to Commercial Metals Co.,” said chairwoman and chief executive Barbara Smith. “The successful completion of the transaction represents an important step in our strategy to be the leading concrete reinforcing specialist as well as a significant provider of merchant and wire rod products,” she added.
The sale lifts Commercial Metals’ rolling capacity by 2.5 million tons annually and gives it a greater share of the domestic rebar market, according to commodities news and pricing service S&P Global Platts.
Gerdau sold the mills to Commercial Metals for $600 million and said it will use the proceeds to pay down debt.
The company said that despite the sale, it maintains a strong presence in North America, operating 13 steel mills throughout the U.S. and Canada. It said it continues to be a leading producer of structural steel, merchant bar, and special bar quality products, as well as rebar.
Published in the December 2018 Edition