Nucor Corporation announced today that it has entered into a Merger Agreement pursuant to which Nucor will acquire Magnatrax Corporation ("Magnatrax"), via the merger of Magnatrax with a wholly owned subsidiary of Nucor, for a cash purchase price of approximately $280 million. Finalization of the acquisition will occur after satisfactory resolution of regulatory approvals, discharge by Magnatrax of outstanding indebtedness and other closing conditions. The transaction is expected to close during the third quarter of 2007 and is expected to be immediately accretive to earnings.
Operating through its seven fabricating plants along with the associated engineering service centers and transportation facilities located in various parts of the U.S., Magnatrax is a leading provider of custom-engineered metal building systems for the growing North American non-residential construction market. Via its American Buildings Company, Kirby Buildings Systems, Gulf States Manufacturers and CBC Steel Buildings subsidiaries and divisions, Magnatrax primarily sells, engineers and fabricates custom metal building systems, which include primary and secondary wall and roof panels, trim and accessories. Magnatrax also offers architectural metal roofing systems for new and retrofit construction, sells third party metal building components (doors, skylights, etc.) and provides related transportation services through additional subsidiaries and divisions.
"The acquisition of Magnatrax is an important growth opportunity for one of our core downstream businesses," said Dan DiMicco, Nucor's Chairman, President and Chief Executive Officer. "Although Nucor is already a major national player in the metal buildings business, the addition of the Magnatrax brands, facilities and, most importantly, people, significantly enhances Nucor's market position."