In a statement, Commercial Metals said the deal includes Gerdau’s Knoxville, Tenn.; Jacksonville, Fla.; Sayreville, N.J.; and Rancho Cucamonga, Calif., mills and 33 rebar fabrication facilities.

"This acquisition aligns with our strategy to focus on our strength in concrete reinforcing products and leverages CMC's core competencies in rebar production and value-added fabrication services to non-residential construction customers. In addition, these assets provide us the opportunity to optimize our product mix more fully in the U.S.," said Commercial Metals president and chief executive Barbara Smith.

Commercial Metals said the acquisition, expected to close sometime before the end of this year, will boost its companywide melt capacity by 60% to 7.2 million tons and strengthen its presence in the biggest construction markets in the U.S.

"As a leader in rebar manufacturing technology and customer service, we are excited to take advantage of our expertise to increase throughput, lower costs and improve the customer experience in our new operations," Smith said, adding that the company plans to invest in the newly acquired facilities.

The sale is the latest in a series of divestments, worth approximately BRL3.2 billion, that Gerdau has made as it reorganizes its portfolio of assets.

“This deal represents an important milestone in our strategy to reduce financial leverage and focus on better return opportunities in the markets where we operate,” said Gerdau executive vice chairman André Gerdau Johannpeter.

Added Peter Campo, president of Gerdau’s North American long steel division: “The impending sale will enable us to accelerate growth in attractive segments in North America, one of our core markets. Together with our Special Steel Operations (GSN), we will continue to serve and create value for customers in the construction, industrial equipment, transportation and energy markets,” he said.

Commercial Metals said it will finance the deal through a combination of cash on hand and borrowings. It expects the deal to be accretive to earnings and cash flow within the first year after it closes.