) has completed the acquisition of Skyline Steel LLC and its
affiliates - a steel-foundation manufacturing and distribution
subsidiary of the steel giant
) - for a total sum of approximately $605 million.
Post-acquisition, Skyline Steel LLC will be Nucor's wholly owned
subsidiary and will function from the company's existing
headquarters in Parsippany, New Jersey. However, it will continue
to exclusively distribute ArcelorMittal's piling and foundation
products in North America and the Caribbean. Nucor expects the
acquisition to be accretive in the next fiscal year.
Skyline Steel has been distributing Nucor's piling products for
over 20 years and has been a key customer of H-piling and hot
rolled sheet piling from Nucor-Yamato Steel. Through the
acquisition, Nucor aims to integrate Skyline into its system and
make it a more valuable downstream customer of coiled plate and
sheet products. In addition, the company expects the technological
know how of both the companies to help them with innovative
solutions for the construction industry.
Skyline has an impressive distribution network, well
complemented by exceptional customer service and technical back up.
The company has 21 sales offices and a strong infrastructure
comprising of a large number of stocking sites, robust supply chain
and numerous processing and fabrication facilities.
Skyline's distribution network serves the U.S., Canada, Mexico
and the Caribbean markets, providing solutions for application in
heavy civil construction, marine construction, underground
commercial parking, storm protection, bridge and highway
construction and environment containment projects in the
infrastructure and construction industries. Therefore, Nucor made a
smart move towards inorganic growth since Skyline's excellent
network will enable it to expand in North America.
Nucor Corp. faces stiff competition from
Commercial Metals Co.
United States Steel Corp.
). The stock currently holds a short-term Zacks #5 Rank, which
translates to short term Strong Sell rating.
COMMERCIAL METL (CMC): Free Stock Analysis
ARCELOR MITTAL (MT): Free Stock Analysis Report
NUCOR CORP (NUE): Free Stock Analysis Report
UTD STATES STL (X): Free Stock Analysis Report
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