Gerdau to acquire Potter Form & Tie for US$10mn

Brazilian long steelmaker Gerdau (NYSE: GGB) will acquire US steelmaker Potter Form & Tie Company for less than US$10mn, a Gerdau spokesperson told BNamericas. Gerdau will purchase the asset via its North American division Gerdau Ameristeel, the steelmaker announced on February 17. Potter is a leading supplier in the Midwest US for fabricated rebar and supplies for the concrete construction industry. It has facilities in Belvidere, Urbana, and Decatur, Illinois; Madison and Appleton, Wisconsin; and Eldridge, Iowa, Gerdau said. Subject to completion and approval of the regulatory authorities, the transaction is expected to close in late March 2004, it said. In combination with Gerdau Ameristeel's 16 reinforcing steel fabricating facilities, the Potter Form & Tie operation will provide engineering, operational and sales talent as well as effective geographic expansion into the densely populated Midwest corridor, the steelmaker said. Gerdau Ameristeel is the second largest mini-mill steel producer in North America with annual manufacturing capacity of over 6.8Mt of mill finished steel products. Porto Alegre, Rio Grande do Sul-based Gerdau operates a total of 23 Steel plants in Brazil, the US, Canada, Argentina, Chile and Uruguay and has installed capacity of 14Mt/y.