Nucor To Acquire Skyline Steel LLC

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May 17, 2012, 09:00 ET

CHARLOTTE, N.C., May 17, 2012 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that it 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 Corporation and will maintain its headquarters in Parsippany, New Jersey.

"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 Corporation. "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."

Skyline Steel LLC is a premier steel foundation distributor serving the U.S., Canada, Mexico and the Caribbean. Skyline distributes high quality products to service the most 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. Skyline's flagship products include hot rolled and cold formed sheet piles, H-piles and pipe piling. The company's processing and fabricating capabilities include spiralweld pipe piling, rolled and welded pipe piling, cold formed sheet piling and threaded bar in Pennsylvania, Mississippi, Ohio, Illinois and Washington. Skyline will also retain exclusive rights to distribute ArcelorMittal's piling and foundation products, including sheet piling, in North America and the Caribbean.

Our purchase price is in line with current marketplace valuations of publicly traded steel distributors. Additionally, we expect to realize meaningful synergies from the acquisition and expect this transaction to be accretive in the next full fiscal year of ownership.

Nucor anticipates that this transaction will close promptly after the satisfaction of all closing conditions and the receipt of required regulatory approvals.

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.

Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "believe," "expect," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. 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) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (2) market demand for steel products; (3) energy costs and availability; and (4) competitive pressure on sales and pricing, including competition from imports and substitute materials. These and other factors are outlined in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2011 Annual Report on Form 10-K. 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.

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