BB&T Capital Markets Serves as the Exclusive Financial Advisor to Optimus Steel, LLC in its Acquisition of the Beaumont Mill and Two Downstream Wire Products Facilities from Gerdau S.A.
On March 30, 2018, Optimus Steel, LLC (“Optimus” or the “Company”) completed its acquisition of the Beaumont, Texas mill and two downstream wire products facilities of Gerdau Ameristeel US, Inc., a division of Gerdau S.A., for $92.5 million. BB&T Capital Markets served as the exclusive financial advisor to Optimus.
About the Companies
Optimus is a newly formed company affiliated with Jacksonville, Florida-based Wire Mesh Corp (WMC). WMC Group is a multi-national producer of high-quality steel and construction products to a variety of sectors globally. WMC operates six domestic facilities that serve 49 states across the U.S. and five countries.
WMC will operate the downstream assets, and Optimus Steel will operate the Beaumont mill. The mill is capable of producing wire rod and coiled rebar and has a melt shop capacity of ~700,000 tons annually. This addition will enable WMC to offer standard and structural mesh products, complementing WMC’s pre-stressed concrete strand operation in Texas.
Gerdau is the leading producer of long steel in the Americas and one of the largest suppliers of special long steel in the world. It has over 45,000 employees and industrial presence in 14 countries with operations in the Americas, Europe, and Asia, which together represent an installed capacity of over 25 million metric tons of steel per year. It is the largest recycler in Latin America and around the world it transforms millions of metric tons of scrap into steel every year. Gerdau is listed on the stock exchanges of São Paulo, New York, and Madrid. Gerdau was founded in 1901 and is based in Porto Alegre, Brazil.
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