Gerdau Ameristeel Corp. has agreed to enter into a joint venture with Pacific Coast Steel, Inc. and Bay Area Reinforcing. Gerdau Ameristeel will acquire a controlling interest in the new joint venture, Pacific Coast Steel.
PCS and BAR comprise one of the country's largest reinforcing steel contractors. They specialize in the fabrication and installation of reinforcing steel products at construction projects throughout California and Nevada.
PCS and BAR operate four rebar fabrication facilities in California, including San Diego, San Bernardino, Fairfield, and Napa, with a combined annual capacity of more than 200,000 tons.
PCS currently is a customer of Gerdau Ameristeel’s newly acquired Sand Spring, Okla., mill, as well as its Beaumont, Texas mill.
The purchase price for the interest in Pacific Coast Steel is expected to be about $104 million. The transaction is expected to close in the fourth quarter of the year.