In an announcement Thursday, Z Capital Partners, the private equity management arm of Z Capital Group, said it would acquire Gerdau’s Atmosphere Annealing LLC and NitroSteel LLC, which together are known as Premier Thermal Solutions. 

Terms of the deal, which is to close in the next 30 days, were not disclosed.

Atmosphere Annealing offers heat treating services, including annealing, normalizing and quenching and tempering to the transportation, oil and gas, agriculture, heavy construction and military sectors. It has plants in Indiana, Michigan and Ohio. 

Located in Wisconsin, NitroSteel produces ferritic nitrocarburized steel bars and tubes for use in fluid power applications. 

Z Capital said that with its financial backing, the two businesses plan to grow by adding new capabilities and diversifying into new markets, as well as through strategic acquisitions.  

"(The businesses have) substantial capacity, a strong management team and capabilities that, with increased focus and investment in sales, marketing and customer service resources, can be leveraged to attain both organic and strategic growth," said Z Capital Group founder and chief executive James Zenni. 

"We are excited to welcome Premiere Thermal Solutions to the Z Capital family and look forward to utilizing our expertise to further accelerate the company's growth."

Gerdau has been selling off assets to focus on its most profitable operations. Since 2014, it has divested 13 assets in the U.S., Europe and Latin America, excluding NitroSteel and Atmosphere Annealing. In 2016, the company’s divestments amounted to approximately US$416.7 million.