Gerdau S.A. (Bovespa: GGBR, NYSE: GGB, Latibex: XGGB) announces that its whollyowned subsidiary, Gerdau Ameristeel, has entered into a definitive agreement with Ameron International, Tokyo Steel and Mitsui & Co. (U.S.A.), Inc. to acquire all the issued and outstanding shares of TAMCO, a California corporation.
TAMCO is a mini-mill steel producer of reinforcing steel bar and is one of the largest rebar mills in the Western U.S. with annual capacity of approximately 500,000 tonnes. Based in Rancho Cucamonga, California, TAMCO is the only steel producer of long products in that state and serves markets primarily in California, Arizona and Nevada.
Subject to certain closing adjustments, the purchase price for TAMCO is approximately US$ 165 million in cash. The transaction, which is subject to satisfactory completion of antitrust and applicable regulatory reviews and other customary closing conditions, is expected to close in the fourth quarter of 2010.
According to Andre B. Gerdau Johannpeter, President and CEO of Gerdau S.A, "TAMCO will expand Gerdau’s network of mini-mills in North America, increasing our geographical footprint into the Western U.S. and our capability to serve the civil construction market in that region”.
Gerdau is the leading producer of long steel in the Americas and one of the largest suppliers of specialty long steel in the world. It has over 40 thousand employees and industrial presence in 14 countries, with operations in the Americas, Europe and Asia, which, combined, have an installed capacity of over 25 million metric tons of steel. It is the largest recycler in Latin America, and around the world, it transforms millions of metric tons of scrap into steel every year. With over 140,000 shareholders, Gerdau’s public companies are listed on the stock exchanges of São Paulo (Bovespa: GGBR4, GGBR3, GOAU4, GOAU3, and AVIL3), New York (Nyse: GGB), Madrid (Latibex: XGGB), and Lima (BVL: SIDERC1).