Jan. 3, 2018

CMC to Purchase U.S. Rebar Assets from Gerdau

Commercial Metals Co. announced plans to acquire certain U.S. rebar steel mill and fabrication assets from long and specialty steel products producer Gerdau.

The companies entered into a definitive agreement worth $600 million, which includes acquisition of 33 rebar fabrication facilities in the U.S. and steel mills in Knoxville, Tenn.; Jacksonville, Fla.; Sayreville, N.J.; and Rancho Cucamonga, Calif. Total annual mill rolling capacity at the sites is 2.5 million tons, according to Commercial Metals.

"This acquisition aligns with our strategy to focus on our strength in concrete reinforcing products and leverages CMC's core competencies in rebar production and value-added fabrication services to non-residential construction customers,” says Barbara Smith, president and CEO of Commercial Metals. “In addition, these assets provide us the opportunity to optimize our product mix more fully in the U.S.”

The move will help Commercial Metals expand its geographic footprint in large construction regions in the U.S., as well as increase the company’s annual rebar and fabrication capacity. At the close of the transaction, Commercial Metals says it expects approximately 7.2 million tons of global melt capacity.

"Over the past several years we have repositioned our portfolio to focus on our core strengths of vertically integrated steel manufacturing and fabrication services, as well as strengthen our balance sheet placing us in the optimal position to take advantage of this unique growth opportunity," says Smith. "We plan to invest in these facilities to create efficiencies utilizing our expertise in the latest innovations for steel manufacturing and fabrication."

The transaction, which is subject to the satisfaction or waiver of customary closing conditions and customary regulatory review, is expected to close sometime in 2018.


December 2017: Two Traits Common to Honored Executives
More...
 
Pause
December 2017: FMA Members Expect to Spend More on Equipment in 2018
More...
Fall 2017: Cutting & Sawing Equipment
More...
Summer 2017
More...
 
Pause
Advanced Controls on Braner Slitters
More...
AHVS Precision Leveler Features Flip-Top Design
More...
Formtek’s Tishken Slitter Increases Production Volume
More...
Red Bud System Handles High-Strength Steels
More...
Bradbury Launches Flat Trak CL Monitoring System
More...
Artus Knives Custom Designed
More...
 
Pause
Privacy Statement  |  Terms Of Use
Copyright by Metal Center News



Wednesday, January 17, 2018