On July 10, 2007, Gerdau Ameristeel Corporation agreed to acquire Chaparral Steel Company for $4.22 billion. Simpson Thacher represented Gerdau Ameristeel in the transaction, which will take the form of a merger.
Chaparral, headquartered in Midlothian, Texas, specializes in the production of structural steel products. It is the second largest producer of structural steel beams in North America.
Gerdau Ameristeel, which is 67 percent owned by our client Brazilian steelmaker Gerdau S.A., is the second largest mini-mill steel producer in North America. The company also operates scrap recycling facilities and specialty processing centers.
Gerdau, the majority shareholder in Gerdau Ameristeel, is the largest long steel producer in the Americas. It has over 35,000 employees and operations in 13 countries.
Closing of the transaction is subject to the approval of Chaparral’s stockholders and other customary closing conditions, including regulatory approvals. The merger is expected to close by the end of this calendar year.
The Simpson Thacher attorneys working on the deal are: Alan Klein, Todd Crider, Timothy Slavin, Jochen Tyrolt and Will Guthrie (M&A); John Creed, Noah Beck and Jason Vollbracht (Tax); Brian Robbins, Andrew O’Brien and Jarrett Hoffman (Executive Compensation); Joe Tringali (Antitrust); Ivan Rothman and Louisa Christofidou (Intellectual Property); Julie Levy and Andrew Janis (Labor); Mardi Merjian, Trestney Hung and Andrew Silverman (Real Estate); Michael Isby (Environmental).