Simpson Thacher advised Brazilian steel producer Gerdau on the sale of 50% equity interests it holds in Diaco, its Colombian subsidiary.
Gerdau is headquartered in Porto Alegre, in the Brazilian state of Rio Grande do Sul, It is the largest producer of long steel in the Americas, with steel mills in Brazil, Argentina, Canada, Chile, Colombia, Dominican Republic, Guatemala, India, Mexico, Peru, Spain, United States, Uruguay and Venezuela. It also holds a 40% stake in the Spanish company Sidenor.
Diaco produces and sells long steel products in Colombia and has annual installed steel production capacity of 674,000 tons. The company is a subsidiary of Gerdau.
The buyer, Putney Capital Management, is an asset management and advisory firm in Central America and the Caribbean. Gerdau and Putney currently jointly own Gerdau-Metaldom in the Dominican Republic.
Partner Jaime Mercado led the Simpson Thacher advising Gerdau.