Gerdau Agrees to Acquire California Steel Mill

Gerdau Agrees to Acquire California Steel Mill

Deal to acquire TAMCO Steel is expected to close by the end of this year.

September 16, 2010

Gerdau S.A. has announced that its Gerdau Ameristeel subsidiary has entered into a definitive agreement with Ameron International, Tokyo Steel and Mitsui & Co. (U.S.A.) Inc. to acquire TAMCO, a California steel company. The purchase price is reportedly around $165 million in cash.

TAMCO, based in Rancho Cucamonga, Calif., is a mini-mill steel producer. The mill has an annual capacity of about 500,000 metric tons, primarily rebar. The steel mill serves markets primarily in California, Arizona and Nevada.

"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,” says Andre Gerdau Johannpeter, president and CEO of Gerdau S.A. in a release.

Gerdau, headquartered in Brazil, has operations in 14 countries. The company has an installed capacity of more than 25 million metric tons of steel. The company also says that it is the largest recycler in Latin America.

(photo courtesy of Gerdau S.A. The photo is of a melt shop at Gerdau's mill in Brazil)