Ameristeel completes North Star purchase

Nov 02, 2004 | 08:55 AM | Jim Leonard

Gerdau Ameristeel Corp. late Monday completed its acquisition of North Star Steel Co. from Cargill Inc.

Gerdau Ameristeel acquired the fixed assets and working capital of four long products mini-mills in Beaumont, Texas, Calvert City, Ky., St. Paul, Minn., and Wilton, Iowa; three wire rod processing facilities in Beaumont and Carrollton, Texas, and Memphis, Tenn.; and a grinding ball facility in Duluth, Minn.

Gerdau Ameristeel paid $266 million for North Star's assets and assumed approximately $12 million of debt and employee benefit obligations. However, the company said it expected to pay an additional $30 million within the next 60 days as an adjustment to the purchase price, reflecting higher working capital levels on the day of the closing.....

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