Nucor (NUE) Enters Agreement to Acquire Independence Tube Corp. in $425M Deal
- European stocks hit three-week low as Trump reality sets in
- Qualcomm (QCOM) Calls Apple's (AAPL) Claims 'Baseless'
- Unease over Trump sends dollar to one-and-half month low
- Kate Spade (KATE) Said to Attract Interest from Coach (COH) and Michael Kors (KORS) - Bloomberg
- Oil falls as signs of U.S. output rise overshadow OPEC-led cuts
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Nucor Corporation (NYSE: NUE) announced that it has agreed to acquire Independence Tube Corporation (ITC), a leading independent manufacturer of hollow structural section (HSS) steel tubing, for $435 million, or approximately 6x average EBITDA over the 2013-2015 period.
"Independence Tube is a natural fit with Nucor. Their business model is similar to ours with extremely efficient manufacturing facilities and a highly variable cost structure. Our companies' cultures are also similar, sharing a belief in continual improvement, operating efficiency and the value of our employees," said John Ferriola, Chairman, CEO and President of Nucor. "This acquisition is another important step in our long-term strategy to increase the number of value-added products we can offer our customers. It also adds to our portfolio another growth platform for our team to use to grow our company."
HSS is used in a broad array of structural and mechanical applications including nonresidential construction, infrastructure, and agricultural and construction equipment end-use markets. ITC has the second highest market share in HSS, selling its products primarily through service centers, which are also an important channel to market for Nucor. ITC is primarily a producer of HSS and does not focus on products for energy or other pipe and tube segments. The addition of ITC to Nucor's portfolio will allow Nucor to offer a wider selection of products to its fabricator and service center customers and strengthens the company's presence in the key nonresidential construction market.
ITC and Nucor are highly complementary. Nucor is installing a large diameter tube mill at an existing facility in Iuka, Mississippi. Adding large size HSS to ITC's already comprehensive product line will create the widest product offering in North America for HSS solutions. 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 HSS further differentiates Nucor from its steel competitors as the leader in providing solutions to its customers.
ITC operates four strategically located state-of-the-art facilities in Illinois and Alabama that annually produce roughly 600,000 tons and employ approximately 335 teammates. ITC purchases hot-rolled coil from suppliers to produce its HSS steel tubing. The company's manufacturing plants are located in close proximity to Nucor's sheet mills in Decatur, Alabama; Crawfordsville, Indiana; and Ghent, Kentucky.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Silgan (SLGN) to Acquire WestRock's (WRK) Specialty Closures and Dispensing Systems Business for $1.03B
- Guggenheim Starts Achaogen (AKAO) at Buy; Positive on Plazomicin Approval, Seen as Takeout Target
- Xtant Medical Holdings (XTNT) Announces Resignation of CEO Dan Goldberger
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Mergers and Acquisitions
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!