NEW YORK — In a transformative deal for the US rebar industry, Gerdau has agreed to sell certain rebar facilities, including mills, to Commercial Metals Co. (CMC) for $600 million.
As first reported by American Metal Market in October, Gerdau has agreed to sell mills in Jacksonville, Florida; Knoxville, Tennessee; Rancho Cucamonga, California; and Sayreville, New Jersey, as well as certain rebar production and placing facilities to CMC.
The mills have capacity of 2.5 million tons, Gerdau said Tuesday January 2.
Executive vice chairman Andre Gerdau Johannpeter said the deal is part of the company's "global transformation, in order to be more profitable in an extremely competitive steel market. This deal represents an important milestone in our strategy to reduce financial leverage and focus on better return opportunities in the markets where we operate."
The transaction is expected to close before the end of the year.