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Nucor Steel
Nucor to Acquire Nelson Steel
Sep. 14, 2007 Nucor Corp. has entered into an agreement to acquire the assets of Nelson Steel, Inc. for a cash purchase price of approximately $54 million.
Located in New Salem, Pa., Nelson produces wire mesh and related products including wire-rack decking, light-weight galvanized mesh, mine mesh, and engineering mesh. With approximately 80,000 tons of capacity and 120 employees, Nelson is a significant player in the mesh markets.
The addition of Nelson further advances Nucor’s downstream growth initiatives and complements the company's existing mesh operations at Nucor Steel Connecticut and Harris Steel Group.
"The acquisition of Nelson is a good growth opportunity for one of our existing downstream businesses and complements and expands our wire mesh businesses at Connecticut and LEC," said Mike Parrish, Executive Vice President. "We look forward to welcoming the Nelson employees to the Nucor team."
Finalization of the acquisition will occur after satisfactory resolution of any regulatory approvals, transfer of appropriate permits and other contracts, and other closing conditions. Nucor expects the transaction to close during the fourth quarter of 2007, and anticipates that it will be immediately accretive to earnings.
Nucor and affiliates manufacture steel products, with operating facilities primarily in the U.S. and Canada. Products include carbon and alloy steel bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor is North America's largest recycler.