Gerdau Ameristeel JV Purchase Reinforcing Steel Contractor

Gerdau Ameristeel Corporation today announced that Pacific Coast Steel (PCS), a Gerdau Ameristeel joint venture, has agreed to purchase the assets of Valley Placers, Inc. (VPI), a reinforcing steel contractor in Las Vegas, Nevada. The transaction is expected to close in the next 30 days. Terms of the transaction were not disclosed.

In addition to contracting activities, VPI operates a steel fabrication facility and retail construction supply business in Las Vegas. VPI currently employs more than 110 field ironworkers and specializes in smaller commercial, retail and public works projects.

"Our participation in the Las Vegas market has increased considerably in the past nine months," remarked Eric Benson, President of PCS. "Valley Placers gives us the local presence needed to support our growth and will provide us immediate access to a broader range of market opportunities here."

J. Neal McCullohs, Vice President of Commercial and Downstream Operations for Gerdau Ameristeel commented, "This further supports our approach to strategically grow our downstream operations in the West. VPI can be supported by our recently purchased mill in Oklahoma, and will easily roll into the PCS organizational structure."

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