Nucor Completes Acquisition of 50% Stake in Duferdofin
07/09/2008 - Nucor completes its previously announced acquisition of 50% of the stock of Duferdofin–Nucor Srl for a purchase price of euro 423.5 million, or approximately $658 million.
Nucor Corp. has completed its acquisition of 50% of the stock of Duferdofin–Nucor Srl for a purchase price of euro 423.5 million (approximately $658 million). Nucor’s investment, originally announced in May, values the new venture at around 6.3 times adjusted EBITDA.
Nucor said the company would continue to operate from its current headquarters in San Zeno, which is near Brescia, Italy.
“We are pleased to announce the successful creation of this new joint-venture company owned equally by Duferco and Nucor,” said Dan DiMicco, Nucor's Chairman, CEO and President. "Nucor has been working together with Duferco to find the ideal combination of our physical and human assets. Duferdofin–Nucor combines Nucor's world-recognized know-how in the efficient production of structural shapes with Duferdofin's strong management team and strategic locations in Italy. We look forward to Duferdofin–Nucor becoming the premier supplier of beam products in Southern Europe and North Africa."
Duferdofin–Nucor Srl will produce beams and other long products in Italy and distribute them in Europe and North Africa. It produced approximately one million tonnes in 2007 from operation of a steel meltshop and bloom/billet caster in San Zeno, Italy, as well as rolling mills in Pallanzeno in the Piedmont region and Giammoro in Sicily.
In addition to existing production facilities, a new merchant bar mill under construction at the Giammoro plant is expected to be fully operational in late 2008. The new mill at Giammoro is expected to produce approximately 450,000 tonnes.
The new company also includes the distribution companies of the former Duferdofin.
Headquartered in Charlotte, N.C., Nucor makes more steel in America than any other company. 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, through The David J. Joseph Co., one of the leading scrap companies in the U.S., 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.
