Nucor Affiliates Announce Two Acquisitions

Rhea-AI Summary

Nucor Corporation (NYSE: NUE) announced two acquisitions through The David J. Joseph Company, enhancing its recycling capacity by 10%. Advantage Metals Recycling acquired Grossman Iron and Steel in St. Louis, Missouri, expanding its facilities to twelve. Trademark Metals Recycling is set to purchase Garden Street Iron & Metal in Fort Myers, Florida, increasing its facilities to twenty-six. These strategic moves aim to bolster Nucor's regional recycling platforms, aligning with its growth strategy to support rising steelmaking capacity along key river systems.

Positive

• 10% increase in recycling capacity enhances operational efficiency.
• Strategically expands geographic reach in key markets (Mississippi and Ohio river systems).
• Strengthens presence in the Florida market with the Garden Street acquisition.

Negative

• None.

CHARLOTTE, N.C., Oct. 1, 2021 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced two acquisitions today on behalf of The David J. Joseph Company (DJJ).  The addition of these new recycling locations, representing a 10% growth in capacity, is consistent with Nucor's growth strategy and demonstrates our commitment to expanding the regional recycling platforms supporting our steel mills.  

On September 30, Advantage Metals Recycling (AMR) completed the purchase of Grossman Iron and Steel located in St. Louis, Missouri.  This acquisition brings AMR's total number of recycling facilities to twelve. "We are pleased to welcome the Grossman teammates to the AMR/Nucor family.  They are well positioned to support our growing steelmaking capacity along the Mississippi and Ohio river system," said Mark Schaefer, AMR Vice President and General Manager. 

Trademark Metals Recycling LLC (TMR) has agreed to purchase the assets of Garden Street Iron & Metal Inc. located in Fort Myers, Florida.  This transaction will close on October 4, subject to normal closing conditions.  This acquisition brings TMR's total number of recycling facilities to twenty-six. "The Garden Street teammates are a welcome addition to the TMR/Nucor team and will seamlessly add to our strong presence in the Florida market," said Brian Phillippi, TMR General Manager.

About The David J. Joseph Company
Founded in 1885, The David J. Joseph Company is a Cincinnati-based subsidiary of Nucor Corporation.  DJJ is one of the largest scrap brokers/processors in the United States providing scrap brokerage, recycling and transportation services.   Including these acquisitions, DJJ operates over 60 scrap recycling facilities, and thirteen U-Pull-&-Pay self-service used auto parts stores. AMR and TMR are both wholly owned by DJJ.

About Grossman Iron and Steel
Founded in 1920, Grossman operates a full-service ferrous and nonferrous scrap metal recycling facility, which includes an automobile shredder and a metal recovery facility in St. Louis, Missouri.  

About Garden Street Iron & Metal
Established in 1989, Garden Street operates three full-service ferrous and nonferrous scrap metal recycling facilities, including an automobile shredder and a self-serve used auto parts store in Southwest Florida.

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. 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; (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, 2020. 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.

View original content:https://www.prnewswire.com/news-releases/nucor-affiliates-announce-two-acquisitions-301390102.html

SOURCE Nucor Corporation

FAQ

What acquisitions did Nucor announce on October 1, 2021?

Nucor announced acquisitions of Grossman Iron and Steel and Garden Street Iron & Metal to expand its recycling capacity.

How much will Nucor's recycling capacity grow with the new acquisitions?

Nucor's recycling capacity will grow by 10% with the new acquisitions.

Where are the newly acquired recycling facilities located?

The Grossman Iron and Steel facility is located in St. Louis, Missouri, and the Garden Street facility is in Fort Myers, Florida.

What is the strategic significance of these acquisitions for Nucor?

These acquisitions align with Nucor's growth strategy to enhance regional recycling platforms supporting its steel mills.

When will the Garden Street Iron & Metal acquisition close?

The Garden Street Iron & Metal acquisition is expected to close on October 4, 2021.