The Firm is representing Gerdau S.A. (NYSE: GGB) in connection with its definitive agreement to sell certain of its rebar production, fabrication and placing operations in the U.S. to Commercial Metals Company (NYSE: CMC) for $600 million, subject to customary purchase price adjustments. The transaction is subject to regulatory clearances and customary closing conditions and is anticipated to close before calendar year-end of 2018.
Gerdau is the leading producer of long steel in the Americas and one of the leading suppliers of special steel in the world. In Brazil, it also produces flat steel and iron ore. It is also the largest recycler in Latin America and, around the world, annually transforms millions of tons of scrap into steel, underlining its commitment to the sustainable development of the regions where it operates.
The Simpson Thacher team includes Michael T. Holick, Alan Klein, Meredith Hunt, Nathalie Hoegger and Juan Gonzalez (M&A); Jacqueline Clinton and Deborah Plum (Tax); Gregory Grogan, Alisa Tschorke and Jason Fixelle (Executive Compensation and Employee Benefits); Adeeb Fadil, Louise Kruger and Noreen Lavan (Environmental); Krista McManus (Real Estate); Peter Guryan, Richard Jamgochian and William Pilon (Antitrust); Arjun Koshal (Capital Markets); Lori Lesser and Amber Harezlak (Intellectual Property); Timothy Coxon (Banking and Credit); and Steven DeLott (Insurance). Stephen Wiseman, Johanna Mayer and Filippo Innocenti (M&A) also provided valuable assistance.