Charlotte steelmaker Nucor said Tuesday it is acquiring Alabama-based Southland Tube for $130 million.
Southland Tube manufactures hollow structural section steel tubing, which is used in nonresidential construction, infrastructure and heavy equipment end-use markets, Nucor said in a statement. Southland employs 280 people at its one facility in Birmingham.
In September, Nucor agreed to acquire Independence Tube Corp. for $435 million. The acquisitions of Independence and Southland, Nucor said, are meant to help build its market leadership position in the hollow structural section steel tubing market, and provide another channel to market for Nucor’s sheet steel mills.
“We see this market as a great opportunity to leverage Nucor’s capabilities and strengths while also adding to our portfolio of products and services for our customers,” said John Ferriola, Nucor’s president and CEO.
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In October, Nucor said it expects its fourth quarter earnings will fall, primarily because of lower margins in its steel mills segment.
Nucor’s shares are up more than 25 percent since Donald Trump’s election as president, much better than a 3 percent increase in the S&P 500 Index. Former Nucor CEO Dan DiMicco, a frequent critic of free-trade polices, is a Trump adviser and has been seen as a potential candidate to serve as U.S. Trade Representative in the new administration.