The particulars of the deal are not being disclosed, however Birmingham is pressed to raise funds in order to repay some of its $290 million line of revolving credit. Gerdau, making the purchase through its American subsidiary Tampa-based AmeriSteel Corp., aims to increase its presence in the US market.
"Because of current economic conditions in the US," Birmingham chairman and CEO John D. Correnti says in a statement, "we believe the sale of Cartersville is in the best long-term interests of Birmingham Steel and BSE, LLC. The transaction with AmeriSteel will allow Birmingham Steel to significantly reduce outstanding debt and lease obligations and also decrease cash requirements for working capital."
The Cartersville mill is located at 384 Old Grassdale Road NE, and produces an annual 40,000 tons of steel and laminates. It was acquired by Birmingham Steel in 1996.
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