Gerdau to acquire Sheffield Steel

Sand Springs, Oklahoma-based minimill Sheffield Steel Corporation announced Wednesday it has entered into a definitive agreement for all of its outstanding shares to be acquired by Gerdau Ameristeel. Gerdau's purchase price for long product producer Sheffield will be approximately $76 million in cash, plus the assumption of $95 million in debt and other liabilities. The deal is expected to close in the second quarter of 2006. Sheffield president and CEO James Nolan commented, "Under the leadership of Gerdau Ameristeel, the combined organization will have additional resources and capabilities with which to service our existing customers as well as the expanding southwestern markets." Sheffield Steel primarily produces rebar and merchant bars with annual shipments of 550'000 net tons of finished products. The company has a melt shop and rolling mill in Sand Springs, Oklahoma, another rolling mill in Joliet, Illinois, and three downstream fabrication facilities in Kansas City and Sand Springs.