Nucor steel finalizes $1 billion deal with NC company as it continues expansion moves
Nucor Corp. this week completed a $1 billion acquisition of two insulated metal panel brands from Cary-based Cornerstone Building Brands.
The deal comes as the Charlotte-based steel company continues to expand its portfolio while making plans to build a $164 million tube mill in Kentucky. The company also is ready to “rebuild this country” Nucor CEO Leon Topalian told CNBC on Tuesday following the Senate’s approval of the $1 trillion infrastructure package.
With the Cornerstone Building acquisition of CENTRIA and Metl-Span brands, Nucor adds insulated metal panels to its TrueCore unit, according to a company news release. The wall and roof panels are made with energy efficient foam sandwiched between two layers of steel or aluminum, according to Nucor.
The acquisitions help Nucor provide a range of products to service high-end architectural applications, as well as the cold storage and warehousing markets, Jeff Carmean, president of Nucor Insulated Panel Group, said in the news release Monday.
Demand for insulated metal products products is expected to grow at double-digit annual rates through the decade, Nucor said in June when it announced its intention to make the $1 billion acquisition.
That growth is driven by consumer preferences for e-commerce and grocery delivery, plus expansion of data centers and server farms requiring temperature-controlled climates, the company has said.
Nucor will add 830 employees from seven Cornerstone Building Brands manufacturing facilities, three offices and a product center. Cornerstone Building Brands is the largest manufacturer of exterior building products including vinyl siding, metal roofing and wall systems in North America, according to the company website.
Nucor growth beyond steel
Nucor is planning to grow in other markets, too.
Last month, Nucor said it intends to purchase Hannibal Industries Inc. for $370 million. Hannibal Industries is a rack and tube manufacturer with facilities in Los Angeles and Houston.
The addition will serve e-commerce, food storage and retail segments with new racking solutions to warehouses, according to Nucor.
“This acquisition reflects our strategy of expanding beyond our core steel businesses,” Topalian said in a statement.
With its headquarters on Rexford Road in south Charlotte, Nucor is the largest steel and steel products producer in the U.S.
The company has nearly 1,000 employees in North Carolina and almost 27,000 workers throughout its more than 300 facilities in the U.S., Canada and Mexico, according to the company website.