Investor conference call and webcast today at
8:30 a.m. Eastern time
CHARLOTTE, N.C., May 16, 2022
/PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that
it has entered into an agreement with an affiliate of investment
funds managed by Kohlberg Kravis Roberts & Co. L.P. to acquire
C.H.I. Overhead Doors (C.H.I.), a leading manufacturer of overhead
doors for residential and commercial markets in the United States and Canada. The
transaction is valued at $3.0
billion, which represents approximately 13x C.H.I.'s
estimated trailing twelve-month EBITDA at close. The
transaction is expected to close in June or shortly thereafter,
pending regulatory approvals and customary closing conditions, and
be immediately accretive to earnings in its first year of
ownership.
"Acquiring C.H.I. is another step in our long-term strategy to
expand into areas that are a natural extension of our business and
leverage our efficient manufacturing model. C.H.I. is a highly
profitable organization built with an amazing team and
culture. It has consistently proven its strength and
competitive advantages due to its broad product suite, very short
lead times, robust delivery infrastructure and focused customer
service," said Leon Topalian,
President and Chief Executive Officer of Nucor Corporation.
"Acquiring C.H.I. allows Nucor to further enhance its already
diverse range of businesses that provide end market solutions to
the construction and infrastructure markets. As with the
acquisitions Nucor made in the past year in insulated metal panels
and racking, C.H.I. increases the overall long-run value of the
organization with businesses that have strong free cash flow
characteristics, robust growth prospects and fit with Nucor's
capabilities."
C.H.I. manufactures overhead door products for residential and
commercial applications, as well as rolling steel and rubber doors
for commercial and industrial customers. The company has
approximately 800 teammates across two manufacturing plants in
Arthur, Illinois, and Terre Haute, Indiana, and regional warehouses
located in California,
Colorado, New Hampshire and New Jersey. With a highly diversified national
customer network of professional garage door dealers, C.H.I. is
able to maintain minimal inventory levels and realize
industry-leading fulfillment times, while providing direct delivery
to customers.
The overhead door market is a growing $5
billion market that has both residential and non-residential
exposure through new builds and repair and remodel applications.
Commercial overhead doors are used in warehousing and retail, areas
that Nucor has focused its attention recently through other
value-added products such as insulated metal panels (CENTRIA,
Metl-Span and TrueCore brands) and steel racking solutions
(Hannibal Industries and Elite Storage Solutions). It is expected
that the C.H.I. acquisition will also benefit from Nucor's recent
paint line investments at its Hickman, Arkansas, and Crawfordsville, Indiana, sheet mills.
"We believe C.H.I. has great potential to not only continue but
accelerate its history of growth and bring supply chain
efficiencies by leveraging Nucor's footprint and existing product
channels. Our companies have strong cultural similarities,
and we are excited that the senior management team will continue to
lead the company. We look forward to working with C.H.I.'s
experienced team to realize these market opportunities and grow the
business," said Topalian.
Moelis & Company LLC served as financial advisor and Moore
& Van Allen PLLC served as legal counsel to Nucor Corporation
for this transaction.
In conjunction with this release, Nucor will be hosting a
conference call today at 8:30 a.m. ET with Leon
Topalian, Nucor's President and Chief Executive Officer
at https://app.webinar.net/BQkVolXo48J. A slide presentation
will accompany the prepared remarks and will be available
at www.Nucor.com/Investors under Investor Events prior to
the call.
About Nucor
Nucor and its affiliates are manufacturers of steel and steel
products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and
alloy steel -- in bars, beams, sheet and plate; hollow structural
section tubing; electrical conduit; steel racking; steel piling;
steel joists and joist girders; steel deck; fabricated concrete
reinforcing steel; cold finished steel; precision castings; steel
fasteners; metal building systems; insulated metal panels; steel
grating; and wire and wire mesh. Nucor, through The David J. Joseph
Company, also brokers ferrous and nonferrous metals, pig iron and
hot briquetted iron / direct reduced iron; supplies ferro-alloys;
and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
Forward-Looking Statements
Certain statements contained in this news release are
"forward-looking statements" that involve risks and uncertainties
which we expect will or may occur in the future and may impact our
business, financial condition and results of operations. The words
"anticipate," "believe," "expect," "intend," "project," "may,"
"will," "should," "could" and similar expressions are intended to
identify those forward-looking statements. These forward-looking
statements reflect the Company's best judgment based on current
information, and, although we base these statements on
circumstances that we believe to be reasonable when made, there can
be no assurance that future events will not affect the accuracy of
such forward-looking information. As such, the forward-looking
statements are not guarantees of future performance, and actual
results may vary materially from the projected results and
expectations discussed in this news release. Factors that might
cause the Company's actual results to differ materially from those
anticipated in forward-looking statements include, but are not
limited to: (1) competitive pressure on sales and pricing,
including pressure from imports and substitute materials; (2) U.S.
and foreign trade policies affecting steel imports or exports; (3)
the sensitivity of the results of our operations to prevailing
market steel prices and changes in the supply and cost of raw
materials, including pig iron, iron ore and scrap steel; (4) the
availability and cost of electricity and natural gas, which could
negatively affect our cost of steel production or result in a delay
or cancellation of existing or future drilling within our natural
gas drilling programs; (5) critical equipment failures and business
interruptions; (6) market demand for steel products, which, in the
case of many of our products, is driven by the level of
nonresidential construction activity in the United States; (7) impairment in the
recorded value of inventory, equity investments, fixed assets,
goodwill or other long-lived assets; (8) uncertainties surrounding
the global economy, including excess world capacity for steel
production, inflation and interest rate changes; (9) fluctuations
in currency conversion rates; (10) significant changes in laws or
government regulations affecting environmental compliance,
including legislation and regulations that result in greater
regulation of greenhouse gas emissions that could increase our
energy costs, capital expenditures and operating costs or cause one
or more of our permits to be revoked or make it more difficult to
obtain permit modifications; (11) the cyclical nature of the steel
industry; (12) capital investments and their impact on our
performance; (13) our safety performance; and (14) the impact of
the COVID-19 pandemic and any variants of the virus. These and
other factors are discussed in Nucor's regulatory filings with the
Securities and Exchange Commission, including those in "Item 1A.
Risk Factors" of Nucor's Annual Report on Form 10-K for the year
ended December 31, 2021. The
forward-looking statements contained in this news release speak
only as of this date, and Nucor does not assume any obligation to
update them, except as may be required by applicable law.
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SOURCE Nucor Corporation