Gerdau Ameristeel announced Tuesday that Pacific Coast Steel (PCS), a majority-owned Gerdau Ameristeel joint venture, has signed a definitive agreement to acquire all assets of Century Steel, Inc. (CSI) for $151.5 million.
Both Pacific Coast Steel and Century Steel Inc. are rebar fabricators. Based in Las Vegas, Nevada, Century Steel Inc. operates reinforcing and structural steel contracting businesses in Nevada, California, Utah, and New Mexico, with a capacity of more than 250,000 tons per year.
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."
The transaction, which is subject to customary closing conditions, including regulatory approval, is expected to close before the end of the first quarter.