CHARLOTTE, North Carolina, June 7, 2021 / PRNewswire / – Nucor Corporation (NYSE: NUE) today announced that it has signed a definitive purchase agreement to acquire the insulated metal panels (IMP) business of Cornerstone Building Brands for a purchase price cash from $ 1 billion, or around 10 times the EBITDA before the pandemic, including the expected synergies. After adjusting the net present value of the associated tax benefits, the actual purchase price realized for Nucor is approximately $ 900 million. The transaction is expected to close later this year, pending regulatory approvals.

“Today’s announcement accelerates our vision to expand the value-added solutions that Nucor provides to our targeted end markets. In addition, it improves our strong financial position with attractive free cash flow conversion rates and accretive EBITDA margins, ”said Leon Topalian, President and CEO of Nucor. “We are excited about this opportunity to acquire a leader and historic innovator in the rapidly growing IMP product category serving the non-residential market. We are committed to finding new and better ways to meet the needs of our customers, and this acquisition is a great fit with Nucor’s long-term strategy to grow our core business and expand our product portfolio. ”

IMP products are wall and roof panel solutions comprised of an energy efficient foam core sandwiched between two layers of steel or aluminum and are available in a variety of widths, thicknesses and exterior finishes. The IMP business that Nucor acquires from Cornerstone Building Brands has seven manufacturing plants located across North America. These locations complement the Nucor Buildings Group footprint, as well as the company’s existing IMP business, TrueCore. With this acquisition, Nucor will acquire two popular heritage brands, CENTRIA and Metl-Span, which provide a full line of products to serve high-end architectural applications to more functional and rapidly expanding cold storage and warehousing applications.

As businesses and institutions continue to focus on environmental attributes, the superior insulation performance of IMP products reduces energy consumption and overall operations-related GHG emissions. In addition, IMP products are easier to install with lower maintenance costs compared to other insulation solutions. Demand for IMP products is expected to increase at double-digit annual growth rates over this decade and is being driven by changing consumer preferences for e-commerce and grocery delivery, as well as expansion data centers and server farms all of which require high temperatures. controlled climates.

“I look forward to enthusiastically welcoming our new Cornerstone Building Brands teammates to the Nucor family. Adding this company to Nucor Buildings Group will allow us to capitalize on our recent success with TrueCore, ”said Jeff Carméan, president of Nucor Buildings Group. “This acquisition will accelerate our growth plans for Nucor Insulated Panel Group and allow us to offer our customers a full range of solutions.

Moelis & Company LLC served as exclusive financial advisor and Moore & Van Allen PLLC served as legal counsel to Nucor Corporation on this transaction.

About Nucor

Nucor and its subsidiaries are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products manufactured include: carbon and alloy steel – in bars, beams, plates and sheets; tubes of hollow structural section; Electrical conduit; steel piles; steel joists and joists; steel platform; fabricated reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and non-ferrous metals, pig iron and hot briquetted iron / direct reduction iron; provides ferroalloys; and processes ferrous and non-ferrous waste. Nucor is the largest recycler in North America.

Forward-looking statements

Certain statements contained in this press release are “forward-looking statements” that involve risks and uncertainties. The words “anticipate”, “believe”, “expect”, “intend”, “project”, “could”, “will”, “should”, “could” and similar expressions are intended to identify these forward-looking statements. These forward-looking statements reflect the best judgment of the Company based on current information and, although we base these statements on circumstances that we believe are reasonable when made, there can be no assurance that future events will not affect the Company. accuracy of these forward-looking statements. information search. As such, forward-looking statements are not guarantees of future performance, and actual results may differ materially from the projected results and expectations discussed in this press release. Factors that could 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) US and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing market steel prices and to variations in the supply and cost of raw materials, including pig iron, iron ore and scrap; (4) the availability and cost of electricity and natural gas, which could negatively impact our steel production costs or cause the delay or cancellation of existing or future drilling under our programs natural gas drilling; (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 non-residential construction activity in United States; (7) impairment of the recorded value of inventories, participations, fixed assets, goodwill or other long-lived assets; (8) uncertainties surrounding the global economy, including excess global steel production capacity; (9) fluctuations in currency conversion rates; (10) material changes in laws or government regulations affecting environmental compliance, including laws and regulations that result in stricter regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and our operating costs or result in the revocation of one or more of our permits 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. These and other factors are discussed in Nucor’s regulatory documents with the Securities and Exchange Commission, including those in “Section 1A.” Risk Factors ”of Nucor’s annual report on Form 10-K for the year ended December 31, 2020. The forward-looking statements contained in this press release speak only as of that date, and Nucor assumes no obligation update them, unless required by applicable law.

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SOURCE Nucor Corporation