CORPORATE NEWS:
Gerdau Ameristeel to acquire Sheffield Steel
Gerdau Ameristeel US Inc has entered into a definitive agreement to acquire all of the outstanding shares of Sheffield Steel Corporation of Sand Springs, Oklahoma.
Sheffield Steel is a mini-mill producer of long steel products, primarily rebar and merchant bars with annual shipments of approximately 550,000 tonnes of finished steel products. It operates a melt shop and rolling mill in Sand Springs, a smaller rolling mill in Joliet, Illinois, and three downstream steel fabricating facilities in Kansas City and Sand Springs.
Subject to certain closing adjustments, the purchase price for all of the shares of Sheffield is expected to be approximately $76m in cash plus the assumption of approximately $94m of debt and certain long-term liabilities, net of cash. The transaction, which is subject to Sheffield shareholder approval, satisfactory completion of anti-trust and applicable regulatory reviews and other customary closing conditions, is expected to close in the second quarter of 2006. Gerdau Ameristeel has sufficient cash on hand to fully fund the transaction and no additional debt will be incurred.
Mario Longhi, President and CEO of Gerdau Ameristeel, commented: “The combination of the Sheffield team with Gerdau Ameristeel is a dynamic step in the continuing consolidation and revitalisation of the North American long product steel sector. The addition of the Sheffield people, resources and assets will expand Gerdau Ameristeel’s primary rebar markets to the southwest United States.”
Gerdau Ameristeel is the second largest mini-mill steel producer in North America with annual manufacturing capacity of over 8.4m tonnes of mill finished steel products. Through its vertically integrated network of 15 mini-mills (including one 50% owned mini-mill), 17 scrap recycling facilities and 43 downstream operations, Gerdau Ameristeel primarily serves customers in the eastern two thirds of North America.
The company’s products are generally sold to steel service centres, steel fabricators, or directly to original equipment manufacturers for use in a variety of industries, including construction, cellular and electrical transmission, automotive, mining and equipment manufacturing.
Company: |
Gerdau Ameristeel US Inc |
Country: |
USA |
Fax: |
+1 |
Email: |
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Website: |
www.gerdauameristeel.com |