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Yesterday, track spike manufacturer and short-line owner Sheffield Steel Corp. announced it would sell all its outstanding stock to Gerdau Ameristeel.

Subject to certain closing conditions and shareholder approval, the purchase agreement calls for Gerdau Ameristeel to buy all Sheffield Steel shares for $76 million in cash. The steelmaker also would pay $94 million to assume Sheffield Steel’s debt and long-term liabilities. The transaction is expected to close in the second quarter.

Sheffield Steel produces hot-rolled bar products, concrete reinforcing bar, fabricated rebar, steel fence posts and railroad track spikes. The company also owns the 26-mile Sand Springs Railway Co., which serves the Tulsa, Okla., area, and interchanges with BNSF Railway Co., Union Pacific Railroad and the South Kansas & Oklahoma Railroad.