Commercial Metals Company Completes Acquisition of Steel Mill Assets

SEATTLE (Scrap Monster): Irving, Texas-headquartered Commercial Metals Company (CMC) announced completion of acquisition of rebar steel mill and fabrication assets from Gerdau S.A. The all-cash deal worth $600 million was announced in the month of January this year.

With this key acquisition, CMC has added 33 rebar fabrication facilities spread across the U.S. into its business portfolio. In addition, the acquisition also adds Gerdau’s U.S. steel mills located in Knoxville, Tennessee; Jacksonville, Florida; Sayreville, New Jersey and Rancho Cucamonga, California. CMC has absorbed all of the employees currently employed at the acquired facilities. The deal is expected to double CMC’s rebar fabrication capacity.

Barbara Smith, Chairman of the Board, President, and Chief Executive Officer, CMC welcomed approximately 3,200 employees belonging to the above facilities to the company. The transaction has helped the company to expand its geographic footprint into states including Texas, California, Florida and New York and add operational flexibility. Furthermore, it is in line with the company strategy to emerge as the leading concrete reinforcing specialist and major provider of merchant and wire rod products, Smith added.

Now, CMC has the second largest rebar fabrication capacity in the U.S., after Nucor Corp. CMC plans to make further investments of up to $250 million in the newly acquired facilities over the next five years, so as to make them more productive and cost-efficient.