Gerdau Ameristeel Completes Deal for North Star

Gerdau Ameristeel Corp. announced that its U.S. operating subsidiary, Gerdau Ameristeel US Inc., has acquired North Star Steel from Cargill, Inc. The acquisition includes four long steel product minimills in St. Paul, Minn.; Wilton, Iowa; Calvert City, Ky.; and Beaumont, Texas; three wire rod processing facilities in Beaumont, Texas; Carrollton, Texas; and Memphis, Tenn.; and a grinding ball facility in Duluth, Minnesota.

Gerdau Ameristeel paid $266 million for the acquired assets and assumed approximately $12 million of debt and employee benefit obligations. Gerdau Ameristeel expects to pay an additional amount of approximately $30 million within the next 60 days as an adjustment to the purchase price reflecting higher working capital levels on the day of the closing.

The four acquired minimills have an annual production capacity of about two million tons of long steel products, principally merchant bars, special quality bars, light structural shapes, reinforcing bar and wire rod.