TAMPA, FL, Feb. 12 /CNW/ - Gerdau Ameristeel Corporation (NYSE: GNA; TSX:
GNA) announced today that Pacific Coast Steel (PCS), a majority owned Gerdau
Ameristeel joint venture, has signed a definitive agreement to acquire all the
assets of Century Steel, Inc. (CSI), a reinforcing and structural steel
contractor specializing in the fabrication and installation of structural
steel and reinforcing steel products, for consideration totaling
$151.5 million. The transaction, which is subject to customary closing
conditions, including regulatory approval, is expected to close before the end
of the first quarter.
CSI, headquartered in Las Vegas, Nevada, operates reinforcing and
structural steel contracting businesses in Nevada, California, Utah and New
Mexico. With fabrication facilities' that have an annual capacity in excess of
250,000 tons per year, CSI participates in virtually all segments of the
marketplace in the western United States.
"This transaction supports our strategy for continued growth in the
downstream business. Century is a fine company with a long history of success
in the fabrication and in-place business. With proven leadership, superior
customer service, and excellent fabrication facilities, they will bring
immediate value to our PCS joint venture, as well as the Gerdau Ameristeel
mills." remarked J. Neal McCullohs, Vice President of Commercial and
Downstream Operations for Gerdau Ameristeel.
Gerdau Ameristeel also announced that, concurrently with the acquisition
of Century, Gerdau Ameristeel will pay approximately $68.0 Million to increase
its equity participation in the PCS joint venture to approximately 84%.
Mario Longhi, President and CEO of Gerdau Ameristeel commented: "Our
venture on the west coast has been extremely successful and we are excited
about the opportunities Century brings and about our increasing participation
in the venture. As with PCS, we found that CSI has a strong management team
with core values consistent with ours. The transaction is expected to be
immediately accretive to our earnings."
About Gerdau Ameristeel
Gerdau Ameristeel is the second largest mini-mill steel producer in North
America with annual manufacturing capacity of approximately 12 million tons of
mill finished steel products. Through its vertically integrated network of
19 mini-mills (including one 50% owned joint venture mini-mill), 19 scrap
recycling facilities and 61 downstream operations, Gerdau Ameristeel serves
customers throughout North America. The company's products are generally sold
to steel service centers, steel fabricators, or directly to original equipment
manufactures for use in a variety of industries, including construction,
cellular and electrical transmission, automotive, mining and equipment
manufacturing. The common shares of Gerdau Ameristeel are traded on the New
York Exchange, and the Toronto Stock Exchange under the symbol GNA.
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