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Nucor to Acquire Steel Racking Manufacturer Hannibal Industries
Thursday 22 July 2021

US-based steel and steel products maker Nucor Corp. (NYSE: NUE) has entered into an agreement to purchase Hannibal Industries, Inc. for USD 370m, which represents 6.9x EBITDA for the trailing-twelve months ended March 2021, the company said.

The company is a national provider of racking solutions to warehouses and serves the e-commerce, industrial, food storage and retail segments.

Pending approvals, Nucor will purchase 100 % of Hannibal Industries' outstanding shares from its Employee Stock Ownership Plan.

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.

Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico.

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.
Date Published: 22/07/2021