Gerdau Ameristeel has entered into an agreement to purchase substantially all the assets of Gate City Steel, Inc. and RJ Rebar, Inc., headquartered in Indianapolis, Ind.

The deal includes seven facilities located in Indianapolis and Muncie, Ind.; Sterling and Lemont, Ill.; Birmingham, Ala. (two locations); and Hamilton, Ohio. The facilities have a combined total capacity of 160,000 tons, including 30,000 tons of epoxy-coated rebar.

Subject to satisfactory completion of regulatory reviews, the transaction is expected to close in early December. In combination with Gerdau Ameristeel's 23 reinforcing steel fabricating facilities, Gate City and RJ Rebar will provide engineering, operational, and sales talent. The locations will also expand Gerdau Ameristeel's presence in the Midwest.

Phillip E. Casey, Gerdau Ameristeel's President and CEO, commented: "The solid reputation and professional resources of Gate City and RJ Rebar will enable Gerdau Ameristeel to better serve our customers across geographies. Gate City's and RJ Rebar's requirements for supplies of reinforcing steel will provide synergies with the North Star Steel mills that will become part of Gerdau Ameristeel through the pending transaction with Cargill, Inc. These acquisitions are very complementary and are important components of Gerdau Ameristeel's growth strategy."

Gerdau Ameristeel is the second-largest minimill steel producer in North America with annual manufacturing capacity of over 6.4 million tons of mill finished steel products. Through its vertically integrated network of 11 minimills (including one 50%-owned minimill), 13 scrap recycling facilities and 32 downstream operations, Gerdau Ameristeel primarily serves customers in the eastern half of North America. The company's products are generally sold to steel service centers, fabricators, or directly to original equipment manufacturers for use in a variety of industries.