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Nucor to Acquire LMP Steel & Wire
08/03/2007 - Nucor enters into an agreement to acquire assets of cold finish bar producer LMP Steel & Wire for a cash purchase price of approximately $28 million.
Nucor Corp. has entered into an agreement to acquire assets of LMP Steel & Wire Co. for a cash purchase price of approximately $28 million.
With approximately 100,000 tons of capacity and 155 employees, LMP is a significant player in the cold finish industry. The addition of LMP, which Nucor expects to be immediately accretive to its earnings, also advances the company's North American market leadership position in cold finished steel.
"The acquisition of LMP is a solid growth opportunity for one of our core downstream businesses," said Dan DiMicco, Nucor's Chairman, President and CEO. "LMP's highly complementary product offering and operations will be a good fit with our existing cold finish business. We look forward to welcoming the LMP 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. The transaction is expected to close during the third quarter of 2007 and is expected to be immediately accretive to earnings.
Located in Maryville, Mo., LMP Steel & Wire produces cold finished bar and operates related businesses servicing the construction and OEM markets in North America.
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.
