CHARLOTTE, NC — Nucor Corporation announced July 20 that it has entered into an agreement to purchase Hannibal Industries, Inc. for $370 million, which represents 6.9x EBITDA for the trailing 12 months ended March 2021. The company is a leading national provider of racking solutions to warehouses and serves the e- commerce, industrial, food storage and retail segments. Pending approvals, Nucor will purchase 100 percent of Hannibal Industries’ outstanding shares from its Employee Stock Ownership Plan (ESOP).
“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. “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.”
Hannibal Industries has manufacturing facilities in Los Angeles and Houston, as well as three distribution centers. It utilizes sheet and bar steel, as well as steel decking, wire deck and fasteners to produce its racking solutions, providing potential supply chain efficiencies with other Nucor businesses. In addition to manufacturing racking solutions, Hannibal Industries works closely with customers during the construction and design phases of a warehouse build- out by offering turn-key services such as installation, procurement and facility integration.
“Acquiring Hannibal Industries further deepens our ability to serve warehouse and distribution customers when coupled with our pending purchase of Cornerstone Building Brands’ insulated metal panels business,” said Rex Query, Executive Vice President, Sheet and Tubular Products. “In addition, having been an employee-owned company, we believe Hannibal Industries will be a natural fit with Nucor’s teammate-centered company culture.”
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilitiesin 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.