Nucor to acquire Nelson Steel in $54M transaction

Nucor Corporation announced September 13 that it has entered into an agreement to acquire substantially all of the assets of Nelson Steel Inc. for a cash purchase price of approximately $54 million. 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 fourth quarter of 2007 and is expected to be immediately accretive to earnings.

Located in New Salem, Pa., Nelson is a producer of wire mesh and related products including wire rack decking, light weight galvanized mesh, mine mesh and engineering mesh. With approximately 80,000 tons of capacity and 120 employees, Nelson is a significant player in the mesh markets. The addition of Nelson further advances the downstream growth initiatives of Nucor and complements the company's existing mesh operations at Nucor Steel Connecticut and Harris Steel Group.

"The acquisition of Nelson is a good growth opportunity for one of our existing downstream businesses and complements and expands our wire mesh businesses at Connecticut and LEC," said Mike Parrish, executive vice president. "We look forward to welcoming the Nelson employees to the Nucor team."

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 North America's largest recycler.