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Nucor to Acquire Building Systems Supplier Magnatrax

06/26/2007 - Nucor enters into Merger Agreement to acquire Magnatrax, a leading provider of custom-engineered non-residential metal building systems, for a cash purchase price of approximately $280 million.

Nucor Corp. has entered into a Merger Agreement pursuant to which Nucor will acquire Magnatrax Corp. for a cash purchase price of approximately $280 million. The acquisition will be achieved by merging Magnatrax with a wholly owned subsidiary of Nucor.
 
Magnatrax is a leading provider of custom-engineered metal building systems for the growing North American non-residential construction market. The company operates seven fabricating plants as well as the associated engineering service centers and transportation facilities located in various parts of the U.S.,
 
Through its American Buildings Co., Kirby Buildings Systems, Gulf States Manufacturers, and CBC Steel Buildings subsidiaries and divisions, Magnatrax primarily sells, engineers and fabricates custom metal building systems, which include primary and secondary wall and roof panels, trim and accessories. Magnatrax also offers architectural metal roofing systems for new and retrofit construction, sells third-party metal building components (doors, skylights, etc.), and provides related transportation services through additional subsidiaries and divisions.
 
 "The acquisition of Magnatrax is an important growth opportunity for one of our core downstream businesses," said Dan DiMicco, Nucor's Chairman, President and CEO. "Although Nucor is already a major national player in the metal buildings business, the addition of the Magnatrax brands, facilities and, most importantly, people, significantly enhances Nucor's market position."
 
The acquisition will be finalized following satisfactory resolution of regulatory approvals, discharge by Magnatrax of outstanding indebtedness and other closing conditions. Nucor anticipates that the transaction, which is expected to close during the third quarter of 2007, 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.