Help Desk -
9717405332, 9599714297, 9810335381

CMC to acquire certain US rebar assets from Gerdau

Steel News - Published on Wed, 03 Jan 2018

Image Source:
Commercial Metals Company announced it has entered into a definitive agreement to acquire certain US rebar steel mill and fabrication assets from Gerdau SA, a producer of long and specialty steel products in the Americas for a cash purchase price of $600 million, subject to customary purchase price adjustments. The acquisition includes 33 rebar fabrication facilities in the United States, as well as steel mills located in Knoxville, Tennessee; Jacksonville, Florida; Sayreville, New Jersey and Rancho Cucamonga, California, with annual mill rolling capacity of 2.5 million tons.

Upon completion of the acquisition, CMC will have an expanded geographic footprint in the largest construction regions in the US. The acquisition will increase CMC's annual rebar and fabrication capacity and allow for the more efficient utilization of its asset base to better serve customers. After adding the incremental 2.7 million tons of melt capacity, CMC will have approximately 7.2 million tons of global melt capacity at the close of the transaction.

The transaction has been approved by the boards of directors of both Commercial Metals Company and Gerdau S.A.. The closing of the transaction, which is expected to close before calendar year-end 2018, is subject to the satisfaction or waiver of customary closing conditions, including customary regulatory review. The transaction is supported by a fully committed $600 million long-term facility.

Source :

Posted By : Nanda Koijam on Wed, 03 Jan 2018
Related News from Steel segment