Nucor’s Harris Steel Expands Rebar Fabrication Business
09/21/2007 - Nucor subsidiary Harris Steel builds its rebar fabrication business with the recent acquisition of Consolidated Rebar and South Pacific Steel, as well as a new agreement to combine businesses with Barker Steel.
Harris Steel Inc.—a wholly owned subsidiary of Nucor Corp.—has entered into an agreement with Barker Steel Co. Inc. to form a new entity combining the two companies' rebar fabrication operations in the northeastern U.S. market.
Harris will contribute its two northeastern U.S. facilities (located in Bethlehem, Pa., and Boston, Mass.) and cash for a 90% equity interest in the new venture. In exchange for a 10% interest in the venture, Barker will contribute its eight northeastern U.S. facilities, which are located in Albany, N.Y.; Canaan, N.H.; South Windsor, Conn.; Avenel, N.J.; Deerfield, Westfield, and Canton, Mass.; and Pawtucket, R.I. The Barker facilities have a total annual rebar fabrication capacity of approximately 218,000 tons.
Harris had previously completed the acquisition of Consolidated Rebar, Inc. (August 2007). Consolidated has two rebar fabrication facilities in Phoenix and Tucson, Ariz., with total annual capacity of 32,000 tons. In June 2007, Harris also acquired South Pacific Steel Corp., Kapolei, Hawaii. South Pacific Steel has annual rebar fabrication capacity of approximately 29,000 tons.
“We are excited to welcome the Barker, Consolidated, and South Pacific Steel employees to the Harris Team — and to the Nucor Family,” said Hamilton Lott, Nucor Executive Vice President. “Just as we expected, Harris is already proving to be a powerful growth platform for Nucor in the rebar fabrication business.”
“As North America's largest rebar producer, Nucor is extremely well positioned for profitable growth downstream in rebar fabrication,” said Lott. “With the completion of the Barker joint venture, Harris Steel's annual rebar fabrication capacity will exceed one million tons.”
Nucor anticipates the transaction to be immediately accretive to earnings, and expects it to close in the fourth quarter of 2007.
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.
