Gerdau Ameristeel, a wholly owned subsidiary of Gerdau S.A., entered into a definitive agreement with Ameron International, Tokyo Steel and Mitsui & Co. to acquire Tamco for approximately $165 million. Rancho Cucamonga, Calif.-based Tamco, a mini-mill steel producer of reinforcing steel bar, is one of the largest rebar mills in the western U.S. with annual capacity of approximately 500,000 metric tons. The company is the only producer of long steel products in California.
The transaction is expected to close in the fourth quarter. Ameron agreed to sell its 50% ownership of Tamco for $82.5 million. Tokyo Steel and Mitsui & Co. agreed to sell the remaining 50% interest for $82.5 million. Tamco will expand Gerdau’s North American network of mini-mills.