CARY – Cornerstone Building Brands is selling its insulated metal panels business to Charlotte-based Nucor in an all-cash deal totalling $1 billion.
Some 830 employees work for the unit being sold and will be transferred to Nucor, the Cary-based company said. The deal is expected to close later this year.
Cornerstone (NYSE: CNR) is the largest manufacturer of exterior building products in North America, according to the company.
The group being sold in seen as a “better strategic fit” with Nucor, according to Cornerstone.
“We believe this transaction creates immediate, substantial value for our shareholders and highlights the immense value that exists within the Cornerstone Building Brands portfolio,” said James Metcalf, chairman and CEO of Cornerstone. “We have cultivated our IMP business into a market leader with strong assets. The IMP business is a better strategic fit with Nucor, who is well-positioned to take the business even further. We will continue to focus on investing in our core growth markets and driving value through our primary selling channels.”
Noted Leon Topalian, CEO of Nucor: “We are excited about this opportunity to acquire a historical leader and innovator in the quickly growing IMP product category serving the non-residential market. We are committed to finding new and better ways to meet our customers’ needs, and this acquisition is an excellent fit with Nucor’s long-term strategy to grow our core business and expand our product portfolio.”
Regarding the group being sold, Cornerstone said “acilities and their employees will continue to operate in the ordinary course until closing.” Cornerstone also will strike a long-term supplier agreement with Nucor for the products being sold.
Cornerstone expects to net $750 million from the deal and said will use the proceeds to pay down debt, invest in other projects and potential acquisitions.
