Nucor plans to purchase Hannibal Industries, a national steel racking solutions provider for warehouses with operations in the e-commerce, industrial, food storage, and retail industries.
The deal will close at $370mn, which corresponds to 6.9 times the EBITDA of Hannibal for the past 12 months ended in March 2021.
The acquisition extends Nucor’s capability to provide warehouse and distribution to customers when combined with its forthcoming Cornerstone Building Brands’ insulated metal panels business purchase. It also complements Nucor’s existing product resources that involve beams, joists and decks, metal buildings, and insulated metal panels.
After the agreement is approved the steel producer will buy 100pc of Hannibal’s shares from its employee stock ownership plan.
Hannibal maintains production sites in Houston and Los Angeles, along with three distribution centers. The company uses sheet steel, bar steel, steel decking, wire deck, and fasteners for racking solutions.
Moreover, Hannibal works with clients during the construction and design stages of warehouse building by supplying installation, procurement, and integration services.