CHARLOTTE – The steel manufacturer Nucor Corporation (NYSE: NUE) will acquire Los Angeles, CA, and Houston, TX, based Hannibal Industries, Inc. in a deal the company reported as $370 million, or 6.9x EBITDA for the trailing-twelve months ended March 2021.

Pending approvals, Nucor will purchase 100 percent of Hannibal Industries’ outstanding shares from its Employee Stock Ownership Plan (ESOP), the company said in a statement.

“Acquiring Hannibal Industries gives us a new growth platform and broadens our offering to the fast-growing warehouse channel, and complements our current product capabilities, including beams, joists and deck, metal buildings and insulated metal panels,” said Leon Topalian, President and Chief Executive Officer of Nucor Corporation in a statement. “This acquisition reflects our strategy of expanding beyond our core steel businesses and establishes a new area for Nucor to pursue a market leadership position.”

The company Nucor is acquiring uses sheet and bar steel and steel decking, wire deck, and fasteners to produce its racking solutions.  Nucor said in a statement that this could provide supply chain efficiencies with other Nucor businesses.

Cornerstone Building Brands in Cary sells biz unit with 830 workers to Nucor for $1B

Nucor recently acquired the insulated metal panels business of Cornerstone Building Brands in an all-cash deal for some $1 billion, including the transference of some 830 employees.

The group being sold in seen as a “better strategic fit” with Nucor, according to Cornerstone, when the news was announced last month.  Cornerstone also will strike a long-term supplier agreement with Nucor for the products being sold and expects to net $750 million from the deal and said it would use the proceeds to pay down debt, invest in other projects and potential acquisitions.