CHARLOTTE, N.C., Dec. 15, 2016 /PRNewswire/ -- Nucor
Corporation (NYSE: NUE) announced today that it has agreed to
acquire Republic Conduit, a leading manufacturer of steel
electrical conduit in North
America, from Luxembourg-based Tenaris S.A. for $335 million, or approximately 6x the average of
its 2015 and projected 2016 EBITDA. Republic Conduit's annual
shipment volume over this period averages approximately 146,000
tons.
"The purchase of Republic Conduit complements our recent
expansion of Nucor's presence in the pipe and tube market and gives
us a new line of value-added products to offer our customers," said
John Ferriola, Chairman, CEO and
President of Nucor Corporation. "This acquisition hits on all five
of the drivers in our company's long-term strategy for profitable
growth. We are very excited to welcome Republic Conduit employees
to our Nucor team."
Republic Conduit produces electrogalvanized Electrical Metallic
Tubing (EMT) and Intermediate Metal Conduit (IMC), as well as
hot-dip galvanized Electrical Rigid Metal Conduit (ERMC). Republic
Conduit's products are primarily used to protect and route
electrical wiring in various nonresidential structures such as
hospitals, schools, office buildings, hotels, stadiums, churches
and shopping malls. The company also serves the power and
industrial sectors.
Republic Conduit employs a total of approximately 300 people at
two non-unionized facilities strategically located in Louisville, Kentucky, and Cedar Springs, Georgia. Once the acquisition
is completed, Nucor will be a market leader in steel conduits.
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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nucor-to-purchase-republic-conduit-300379400.html
SOURCE Nucor Corporation