Nucor to Buy Republic Conduit, Pushing Recent Pipe and Tube Investments to Nearly US$1B
12/15/2016 - Nucor Corp. has signed an agreement to acquire Republic Conduit from Luxembourg-based Tenaris S.A. for US$335 million, the steelmaker said on Thursday.
The deal is Nucor’s third pipe and tube acquisition this fall, expanding Nucor’s presence in that market even more -- at cost of nearly US$905 million.
Nucor in September announced it would acquire hollow structural sections maker Independence Tube for US$435 million. Two and a half months later, the company said it was buying Southland Tube, which also makes hollow structural sections, for US$135 million.
Those deals, Nucor said, will help it build a market leading position in hollow structural sections. But the Republic acquisition gives it a leading spot in steel conduit. Republic's shipments averaged about 146,000 tons in each of 2015 and 2016, according to Nucor.
"The purchase of Republic Conduit complements our recent expansion of Nucor's presence in the pipe and tube market and gives us a new line of value-added products to offer our customers," Nucor chairman and chief executive John Ferriola said in a statement.
"This acquisition hits on all five of the drivers in our company's long-term strategy for profitable growth,” he added.
Republic Conduit makes electrogalvanized electrical metallic tubing, intermediate metal conduit and hot-dip galvanized electrical rigid metal conduit. The products are primarily used to protect and route electrical wiring in nonresidential structures. Republic also sells into the power and industrial sectors.
Republic employs about 300 non-union workers at its two plants in Louisville, Ky., and Cedar Springs, Ga.
Nucor in September announced it would acquire hollow structural sections maker Independence Tube for US$435 million. Two and a half months later, the company said it was buying Southland Tube, which also makes hollow structural sections, for US$135 million.
Those deals, Nucor said, will help it build a market leading position in hollow structural sections. But the Republic acquisition gives it a leading spot in steel conduit. Republic's shipments averaged about 146,000 tons in each of 2015 and 2016, according to Nucor.
"The purchase of Republic Conduit complements our recent expansion of Nucor's presence in the pipe and tube market and gives us a new line of value-added products to offer our customers," Nucor chairman and chief executive John Ferriola said in a statement.
"This acquisition hits on all five of the drivers in our company's long-term strategy for profitable growth,” he added.
Republic Conduit makes electrogalvanized electrical metallic tubing, intermediate metal conduit and hot-dip galvanized electrical rigid metal conduit. The products are primarily used to protect and route electrical wiring in nonresidential structures. Republic also sells into the power and industrial sectors.
Republic employs about 300 non-union workers at its two plants in Louisville, Ky., and Cedar Springs, Ga.
