Nucor to Acquire Ambassador Steel
06/13/2008 - Nucor’s Harris Steel will acquire the issued and outstanding common shares of Ambassador Steel for a cash purchase price of approximately $185,000,000.
Nucor Corp.’s wholly owned subsidiary, Harris Steel, Inc., has signed a Purchase Agreement to acquire all of the issued and outstanding common shares of Ambassador Steel Corp. for a cash purchase price of approximately $185,000,000. The transaction will also include the shares of Ambassador affiliate, Delta Erecting, Inc.
Auburn, Ind., based Ambassador is a fabricator and distributor of concrete reinforcing steel and related products. Founded in 1974, it has grown to be one of the largest independent fabricators and distributors of rebar in the United States. In 2007, Ambassador shipped 422,000 tons of fabricated rebar and distributed another 228,000 tons of reinforcing steel.
“The acquisition of Ambassador continues Nucor's downstream growth initiatives and is an opportunity to enhance Nucor's national footprint in the rebar fabrication market," said Daniel R. DiMicco, Nucor's Chairman, CEO and President. “We are looking forward to adding the Ambassador team to the Nucor and Harris family.”
Completion of the acquisition is contingent upon receipt of standard regulatory approvals, satisfactory completion of due diligence, and fulfillment of other customary closing conditions. The transaction is expected to close during the third quarter of 2008.
Nucor and affiliates manufacture steel products, with operating facilities primarily in the U.S. and Canada. Products produced 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., also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and non ferrous scrap. Nucor is North America's largest recycler.
