Gerdau Ameristeel has signed a definitive merger agreement to acquire Chaparral Steel Co. for $86 per share in cash. Chaparral Steel’s Board of Directors unanimously approved the transaction and will recommend to company shareholders that they vote in favor of the offer, which values Chaparral Steel’s equity at $4.22 billion. The transaction is expected to close before the end of the year.
Gerdau Ameristeel is the second-largest mini-mill steel producer in North America with annual manufacturing capacity of over 9 million tons of mill-finished steel products. Chaparral Steel is the second-largest producer of structural steel products in North America and is also a major producer of steel bar products.
Gerdau Ameristeel to Acquire Chaparral Steel
July 11, 2007