CHARLOTTE, N.C., Dec. 6, 2016 /PRNewswire/ -- Nucor
Corporation (NYSE: NUE) announced today that it has agreed to
acquire Southland Tube, an independent manufacturer of hollow
structural section (HSS) steel tubing, for $130 million, or approximately 8x average EBITDA
over the 2011-2016 period.
"The acquisition of Southland Tube is an excellent fit for our
Nucor family and our strategy for profitable growth," said
John Ferriola, Chairman, CEO and
President of Nucor. "It complements our recent acquisition of
Independence Tube in the HSS steel tubing market. We see this
market as a great opportunity to leverage Nucor's capabilities and
strengths while also adding to our portfolio of products and
services for our customers."
HSS is used in a broad array of structural and mechanical
applications including nonresidential construction, infrastructure,
and heavy equipment end-use markets. Southland Tube has one
facility located in Birmingham,
Alabama, which is well situated to serve the HSS market.
Approximately 280 non-unionized teammates work at the Birmingham facility. With annual shipments of
about 240,000 tons, Southland Tube has the third largest market
share in HSS steel tubing.
Through the acquisitions of Independence Tube and Southland
Tube, Nucor is building a market leadership position in the HSS
steel tubing market and providing an additional channel to market
for Nucor's sheet steel mills. In 2006, 8% of Nucor's total
steel mill shipments were to our downstream businesses. The
company expects that number to grow to about 20% with these
acquisitions.
Nucor is North America's most
comprehensive provider of steel solutions to the construction and
infrastructure markets with leadership positions in plate, bar and
structural steels, as well as joist, decking, metal buildings and
rebar fabrication. The addition of this HSS steel tubing
capacity to its product portfolio further differentiates Nucor from
its steel competitors as the leader in providing solutions to its
customers.
Nucor and its affiliates are manufacturers of steel products,
with operating facilities primarily in the U.S. and Canada.
Products produced include: carbon and alloy steel -- in bars,
beams, sheet and plate; hollow structural section tubing; steel
piling; steel joists and joist girders; steel deck; fabricated
concrete reinforcing steel; cold finished steel; steel fasteners;
metal building systems; steel grating; and wire and wire
mesh. Nucor, through The David J. Joseph Company, also
brokers ferrous and nonferrous metals, pig iron and HBI/DRI;
supplies ferro-alloys; and processes ferrous and nonferrous scrap.
Nucor is North America's largest
recycler.
Certain statements contained in this news release are
"forward-looking statements" that involve risks and
uncertainties. The words "believe," "expect," "project,"
"will," "should," "could" and similar expressions are intended to
identify those forward-looking statements. Factors that might
cause the Company's actual results to differ materially from those
anticipated in forward-looking statements include, but are not
limited to: (1) competitive pressure on sales and pricing,
including competition from imports and substitute materials; (2)
the sensitivity of the results of our operations to prevailing
steel prices and the changes in the supply and cost of raw
materials, including scrap steel; (3) market demand for steel
products; and (4) energy costs and availability. These and
other factors are discussed in Nucor's regulatory filings with the
Securities and Exchange Commission, including those in Nucor's
fiscal 2015 Annual Report on Form 10-K, Item 1A. Risk
Factors. The forward-looking statements contained in this
news release speak only as of this date, and Nucor does not assume
any obligation to update them.
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SOURCE Nucor Corporation