Gerdau Ameristeel Agrees to Purchase Steel Firms

Gerdau Ameristeel has entered into an agreement to purchase substantially all the assets of Gate City Steel, Inc. and RJ Rebar, Inc., headquartered in Indianapolis, Ind.

Gate City Steel and RJ Rebar supply plain and epoxy-coated, fabricated concrete reinforcing steel. The seven facilities included in the acquisition are located in Indianapolis and Muncie, Ind.; Sterling and Lemont, Ill.; Birmingham, Ala (two locations); and Hamilton, Ohio. Combined the facilities have a total capacity of 160,000 tons, including 30,000 tons of epoxy-coated rebar.

The transaction is expected to close in early December. In combination with Gerdau Ameristeel's 23 reinforcing steel fabricating facilities, Gate City and RJ Rebar will provide engineering, operational, and sales talent. The locations will also expand Gerdau Ameristeel's presence in the Midwest.