Gerdau acquires assets of scrap recycler in the US for $60 million

Brazilian steel company Gerdau, through Gerdau Ameristeel, a subsidiary in North America, has signed an agreement to acquire the assets of the American Dales Recycling Partnership. This is reported by NoticiasDe.

Dales Recycling Partnership is engaged in the processing of ferrous scrap. The deal is valued at $60 million and includes land, inventory and fixed assets related to the latter’s operations in Tennessee, Kentucky and Missouri.

The move is intended to increase Gerdau’s scrap processing through its own channels to provide the company with competitively priced raw materials for its operations.

The transaction is subject to customary closing conditions for transactions of this nature.

Gerdau clarified that the acquisition is consistent with its strategy of growth and operational competitiveness through assets with great potential to create long-term value and expand into more profitable markets.

Earlier this year, Gerdau and Danieli Corus, a subsidiary of the Italian steel equipment manufacturer, signed contracts to modernize blast furnace No. 01 at Ouro Branco, located in Minas Gerais. The project, among other things, includes the construction of a new furnace hearth.

As GMK Center previously reported, last year Gerdau signed an agreement to acquire Solar Arinos Holding to develop, build and operate a new solar energy park in Minas Gerais.