Nucor Subsidiary Acquires Ambassador Steel
08/27/2008 - Nucor subsidiary Harris Steel completes its acquisition of Auburn, Ind., based Ambassador Steel for a cash purchase price of approximately $185 million.
Nucor Corp.’s wholly owned subsidiary, Harris Steel, Inc., has completed its acquisition of the stock of Auburn, Ind., based Ambassador Steel Corp. for a cash purchase price of approximately $185 million.
The transaction includes the shares of Ambassador's affiliate, Delta Erecting.
At closing, Harris Steel also repaid Ambassador's bank debt of approximately $136 million, which primarily financed the company's working capital requirements. At the end of July, Ambassador's working capital, excluding this debt, was approximately $165 million.
Ambassador is a fabricator and distributor of concrete reinforcing steel and related products. In 2007, the company shipped 422,000 tons of fabricated rebar and distributed another 228,000 tons of reinforcing steel.
"We are excited and proud to welcome the Ambassador employees to the Nucor and Harris family," said Hamilton Lott, Nucor Executive Vice President. "Ambassador expands our rebar fabrication footprint through the midwestern, Gulf Coast and southeastern regions of the U.S.
“Just as we expected, Harris Steel has proven to be a powerful downstream growth platform for Nucor,” added Lott. “With the addition of Ambassador to the other acquisitions Harris Steel has completed, our rebar fabrication business has more than doubled since Nucor acquired Harris Steel in March of 2007.”
Founded in 1974, Ambassador has grown to become one of the largest independent fabricators and distributors of rebar in the United States. The company shipped 422,000 tons of fabricated rebar and distributed another 228,000 tons of reinforcing steel in 2007.
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.
