Nucor Completes Acquisition of Insulated Metal Panels Business

Rhea-AI Summary

Nucor Corporation (NYSE: NUE) has completed the acquisition of Cornerstone Building Brands' insulated metal panels business for approximately $1 billion. The acquisition includes CENTRIA and Metl-Span brands, now part of Nucor's new Insulated Panel Group, which aims to enhance product offerings for high-end architectural applications and cold storage markets. This strategic move is expected to bolster Nucor's market position and expand its product range.

Positive

• Acquisition enhances Nucor's product offerings in high-end architectural applications and cold storage markets.
• Strengthens Nucor's position in the insulated metal panels segment.

Negative

• None.

CHARLOTTE, N.C., Aug. 9, 2021 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that it has successfully completed its acquisition of Cornerstone Building Brands' insulated metal panels (IMP) business for a cash purchase price of approximately $1 billion, subject to customary adjustments. The Nucor management team is in place and the CENTRIA and Metl-Span brands acquired from Cornerstone Building Brands are now a part of the newly created Insulated Panel Group, which also includes the Company's existing IMP business, TrueCore.

"We are excited to officially welcome our CENTRIA and Metl-Span teammates as part of the Nucor team," said Jeff Carmean, President of Nucor Insulated Panel Group. "Adding these two brands to our Insulated Panel Group will allow us to provide our customers with a full range of products to service high-end architectural applications, as well as the quickly expanding cold storage and warehousing markets."

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 piling; steel joists and joist girders; steel deck; fabricated concrete 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 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.

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SOURCE Nucor Corporation

FAQ

What did Nucor Corporation announce on August 9, 2021?

Nucor announced the completion of its acquisition of Cornerstone Building Brands' insulated metal panels business for approximately $1 billion.

How will the acquisition of Cornerstone's insulated metal panels business impact Nucor?

The acquisition is expected to enhance Nucor's product offerings and strengthen its position in high-end architectural applications and cold storage markets.

What brands did Nucor acquire from Cornerstone Building Brands?

Nucor acquired the CENTRIA and Metl-Span brands as part of the insulated metal panels business.

What is the significance of Nucor's creation of the Insulated Panel Group?

The Insulated Panel Group integrates the newly acquired brands with Nucor's existing business, TrueCore, facilitating a broader range of product offerings.