Nucor to Acquire Skyline Steel
05/18/2012 - Nucor Corp. has signed a Stock Purchase Agreement to acquire the membership interests of Skyline Steel LLC and its subsidiaries from ArcelorMittal, for approximately $605 million. Skyline Steel will be a wholly owned subsidiary of Nucor Corp. and will maintain its headquarters in Parsippany, N.J.
Nucor Corp. has signed a Stock Purchase Agreement to acquire the membership interests of Skyline Steel LLC and its subsidiaries from ArcelorMittal, for approximately $605 million. Skyline Steel will be a wholly owned subsidiary of Nucor Corp. and will maintain its headquarters in Parsippany, N.J.
Skyline will retain exclusive rights to distribute ArcelorMittal's piling and foundation products, including sheet piling, in North America and the Caribbean.
Nucor says its purchase price is in line with current marketplace valuations of publicly traded steel distributors. The company expects to realize meaningful synergies from the acquisition and expects this transaction to be accretive in the next full fiscal year of ownership.
"We are extremely excited to announce the acquisition of a company that has been a leading partner in growth in piling production for the last 20 years," said Daniel R. DiMicco, Chairman and CEO of Nucor Corp. "With its considerable distribution network, excellent customer service and strong technical support, Skyline is well positioned to continue to grow in the piling and foundation products area in North America.
“The Skyline organization has been a distributor of Nucor's piling products for more than two decades. Now, more than ever, they will help drive our success from within the Nucor family. Skyline is a significant consumer of H-piling and hot rolled sheet piling from Nucor-Yamato Steel, and they will become a more valuable downstream consumer of Nucor's coiled plate and sheet products. Skyline will also develop synergies with our other downstream operations by providing value-added solutions to the construction industry."
Nucor anticipates that this transaction will close promptly after the satisfaction of all closing conditions and the receipt of required regulatory approvals.
Skyline Steel LLC is a steel foundation distributor serving the U.S., Canada, Mexico, and the Caribbean. It distributes high-quality products to service challenging applications including marine construction, bridge and highway construction, heavy civil construction, storm protection, underground commercial parking, and environment containment projects in the infrastructure and construction industries.
Skyline has 21 sales offices and a robust infrastructure comprised of processing and fabrication facilities, dozens of stocking locations, an “efficiently coordinated” supply chain, and exclusive engineering support. Its flagship products include hot rolled and cold formed sheet piles, H-piles and pipe piling. The company's processing and fabricating capabilities include spiral-weld pipe piling, rolled and welded pipe piling, cold formed sheet piling and threaded bar in Pennsylvania, Mississippi, Ohio, Illinois, and Washington.
Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include carbon and alloy steel in 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 the nation's largest recycler.
