Commercial Metals Company (CMC) entered into a definitive agreement to acquire certain U.S. rebar steel mill and fabrication assets from Gerdau S.A. for $600 million. The acquisition includes 33 rebar fabrication facilities in the U.S., as well as steel mills located in Knoxville, Tenn.; Jacksonville, Fla.; Sayreville, N.J.; and Rancho Cucamonga, Calif. The mills have a combined annual mill rolling capacity of 2.5 million tons.
The acquisition will increase CMC’s annual rebar and fabrication capacity. The company will have approximately 7.2 million tons of global melt capacity at the close of the transaction, which is expected by the end of 2018. CMC said it plans to invest in the facilities to create efficiencies utilizing its expertise in the latest innovations for steel manufacturing and fabrication.