Steel Mills
CMC Buys Gerdau's U.S. Rebar Operations
Written by Sandy Williams
January 1, 2018
Commercial Metals Company (CMC) has agreed to buy Gerdau’s rebar operations in the United States for $600 million. The acquisition includes 33 rebar fabrication facilities, as well as steel mills in Knoxville, Tenn.; Jacksonville, Fla.; Sayreville, N.J.; and Rancho Cucamonga, Calif., with annual mill rolling capacity of 2.5 million tons. The addition of the Gerdau facilities will bring CMC’s global melt capacity to 7.2 million tons.
The acquisition will expand CMC’s geographic footprint in the nonresidential construction sector and optimize product mix in the U.S, said CMC President and CEO Barbara Smith.
“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,” said Smith. “We plan to invest in these facilities to create efficiencies utilizing our expertise in the latest innovations for steel manufacturing and fabrication.”
Peter Campo, president of Gerdau’s North American long steel division, commented, “The impending sale will enable us to accelerate growth in attractive segments in North America, one of our core markets. Together with our Special Steel Operations, we will continue to serve and create value for customers in the construction, industrial equipment, transportation and energy markets.”
Sandy Williams
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