Texas buyer pays $12 million for Jacksonville properties.
Commercial Metals Co. of Irving, Texas, bought the Gerdau Jacksonville Ameristeel mill as part of its acquisition of 33 rebar fabrication facilities in the United States and steel mills in Knoxville, Tennessee; Sayreville, New Jersey; and Rancho Cucamonga, California.
Commercial Metals bought the properties from Gerdau S.A., a producer of long and specialty steel products in the Americas, for $600 million. The Jacksonville property was sold for $11.8 million, deeds show.
CMC Steel US LLC has applied to the St. Johns River Water Management District for transfer of a consumptive use permit for the Gerdau Ameristeel Jacksonville Steel Division at 16770 Rebar Road.
Commercial Metals made the acquisition announcement Nov. 5. Deeds show that Gerdau Ameristeel US Inc. of Tampa sold the Jacksonville property that day to CMS Steel US LLC.
Deeds show that Gerdau sold the steel mill and 450 acres in West Jacksonville for $9.85 million along with an office and light manufacturing facility on 9.3 acres in Southside at 9625 Florida Mining Blvd. E. for $1.94 million.
The West Jacksonville plant was built in 1976 with additions in 1986 and after. , 1987 and 1989, property records show. The Southside facility as developed in 1986.
The 450 acres, in the Baldwin area, comprises about 12 acres for the mill, more than 33 vacant acres and just over 404 acres of conservation easements.
Barbara Smith, chairman, president and CEO, said she welcomed the 3,200 employees.
"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,” Smith said in the news release.
“With our expanded geographic footprint and added operational flexibility, this transaction supports our vertically integrated steelmaking model and will leverage our existing rebar manufacturing technology and customer service core competencies."
Commercial Metals Co. said in the release that it and its subsidiaries make, recycle and market steel and metal products, related materials and services through a network of facilities that includes eight electric arc furnace 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.
Commercial Metals announced Jan. 2 that it entered into a definitive agreement for the properties and expected to complete the deal by year-end. It said the mills it was buying will increase its global melt capacity to about 7.2 million tons.