Nucor Agrees to Acquire Steel Tubing Maker for $435 Million
September 19 2016 - 10:21AM
Dow Jones News
By Tess Stynes
Nucor Corp. (NUE) agreed to acquire Independence Tube Corp. for
$435 million in a deal that is expected to widen the steelmaker's
offerings to fabrication and service-center customers and
strengthen its presence in the nonresidential construction
market.
Independence Tube, which makes hollow structural section steel
tubing, has four plants in Illinois and Alabama that produce
roughly 600,000 tons and employ about 335 people. Nucor said the
plants are located in close proximity to its sheet mills in
Alabama, Indiana and Kentucky.
Nucor, the country's biggest steelmaker by output, said it also
installing a large diameter tube mill at an existing plant in
Mississippi, which when combined with Independence Tube's
offerings, will create the widest product offering in North
America.
Hollow structural section steel tubing is used in a broad range
of applications, including nonresidential construction,
infrastructure and agricultural and construction equipment.
Last week, the Charlotte, N.C., company projected stronger
third-quarter earnings as government tariffs on imports have
boosted steel prices, though the growth wasn't as much as analysts
had expected. At the time, Nucor also said it continued to see
gradual improvement in nonresidental construction markets.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
September 19, 2016 10:06 ET (14:06 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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