IRVING, Texas, Nov. 5,
2018 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC),
today announced it has completed the acquisition of 33 rebar
fabrication facilities in the United
States, as well as steel mills located in Knoxville, Tennessee; Jacksonville, Florida; Sayreville, New Jersey and Rancho Cucamonga, California from Gerdau S.A.
(NYSE: GGB), a producer of long and specialty steel products in the
Americas for a cash purchase price of $600
million, subject to customary purchase price
adjustments.
"I am thrilled to welcome the approximately 3,200 employees of
these operations to Commercial Metals Company," said Barbara Smith, Chairman of the Board, President,
and Chief Executive Officer of Commercial Metals. "The successful
completion of the transaction represents an important step in our
strategy to be the leading concrete reinforcing specialist as well
as a significant provider of merchant and wire rod products.
With our expanded geographic footprint and added operational
flexibility, this transaction supports our vertically integrated
steel making model and will leverage our existing rebar
manufacturing technology and customer service core
competencies."
About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture,
recycle and market steel and metal products, related materials and
services through a network of facilities that includes eight
electric arc furnace ("EAF") mini mills, two EAF micro mills, a
rerolling mill, steel fabrication and processing plants,
construction-related product warehouses, and metal recycling
facilities in the United States and Poland.
Forward-Looking Statements
This news release contains forward-looking statements regarding
the Company's expectations relating to the acquisition, and the
financial and operational benefits of the proposed acquisition.
These forward-looking statements generally can be identified by
phrases such as we, CMC or its management "expects," "anticipates,"
"believes," "estimates," "intends," "plans to," "ought," "could,"
"will," "should," "likely," "appears" or other similar words or
phrases. These and other forward-looking statements are based
on management's current views and assumptions and involve risks and
uncertainties that could significantly affect expected results.
Although we believe that our expectations are reasonable, we can
give no assurance that these expectations will prove to have been
correct, and actual results may vary materially. Results may
be materially affected by factors such as: risks associated with
acquisitions generally; failure to retain key management and
employees; issues or delays in the successful integration of the
acquired operations with those of the Company, including incurring
or experiencing unanticipated costs and/or delays or difficulties;
difficulties or delays in the successful transition of the acquired
operations from the information technology systems of the sellers
to those of the Company as well as risks associated with other
integration or transition of the operations, systems and personnel
of the acquired operations; future levels of revenues being lower
than expected and costs being higher than expected; failure or
inability to implement growth strategies in a timely manner;
unfavorable reaction to the proposed acquisition by customers,
competitors, suppliers and employees; conditions affecting the
industry generally; local and global political and economic
conditions; conditions in the securities market that are less
favorable than expected; and changes in the level of capital
investment, and other risks described in the Company's filings with
the Securities and Exchange Commission, including the Company's
Annual Report on Form 10-K for the year ended August 31, 2018. Except as required by law,
the Company undertakes no obligation to update, amend or clarify
any forward-looking statements to reflect changed assumptions, the
occurrence of anticipated or unanticipated events, new information
or circumstances or otherwise.
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SOURCE Commercial Metals Company