Feb 13 2008
Gerdau Ameristeel Corporation 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."