CHARLOTTE, N.C., May 13 /PRNewswire-FirstCall/ -- Nucor Corporation
(NYSE: NUE) announced today that it has entered into an agreement to acquire
50% of Duferdofin-Nucor S.r.l., a new joint venture being created with Duferco
S.A. for the production of beams in Italy and the distribution of beams in
Europe and North Africa. The joint venture will include the Duferco Group's
Italian long product production assets and associated distribution companies.
Nucor will pay euro 423.5 million (approximately $658 million) for its 50%
equity stake in Duferdofin-Nucor. Formation of Duferdofin-Nucor and
finalization of the acquisition of the 50% stake by Nucor will occur after
satisfactory resolution of any regulatory approvals, the transfer of
appropriate permits and other contracts and other closing conditions. The
transaction is expected to close during the third quarter of 2008. The
investment by Nucor values the new venture at around 6.3 times adjusted
EBITDA.
Duferdofin-Nucor will be the leader in beam production in Italy and
Southern Europe. Production of beams and other long products from
Duferdofin-Nucor's plants in San Zeno, Pallanzeno and Giamorro (all in Italy)
exceeded 900,000 MT in 2007. A new merchant bar mill is under construction in
Giamorro and is expected to be operational in late 2008. Additional
investments in the Italian operations are under review by the two companies.
Nucor is the largest producer of beams in North America, with a 2007 total
production of approximately three million tons. Nucor is recognized as a world
leader in the efficient combination of technology and people to serve its
customers with the highest quality products and service. As part of the
contemplated joint venture, Nucor will bring its considerable technical and
commercial expertise.
"Since our earliest contacts with Nucor, we have experienced a complete
agreement on business vision, which is a fundamental basis for the success of
any venture. Nucor's recognized operating skills will greatly assist in
further improving the industrial performance of the joint venture and also
assist in the future industrial design of the plants. We are very excited by
the prospects of this joint venture and look forward to close cooperation with
Nucor," declared the Chairman of Duferco, Bruno Bolfo.
Dan DiMicco, Nucor's CEO and Chairman, noted, "Our teams have worked
together smoothly from the development of the memorandum of understanding
through execution of the definitive agreements. Both companies have a similar
focus on both customer service and working together as a team. We look forward
to working even more intensively together through the closing of this deal and
into the exciting times ahead. We are convinced that, working together, Nucor
and Duferco will reach new heights of achievement in customer service for the
full range of beam and structural products."
Nucor and affiliates are manufacturers of steel products, with operating
facilities primarily in the U.S. and Canada. Products produced include:
carbon and alloy steel -- in bars, beams, sheet and plate; steel joists and
joist girders; steel deck; fabricated concrete reinforcing steel; cold
finished steel; steel fasteners; metal building systems; light gauge steel
framing; steel grating and expanded metal; and wire and wire mesh. Nucor,
through The David J. Joseph Company, also brokers ferrous and nonferrous
metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and
non ferrous scrap. Nucor is North America's largest recycler.
Certain statements contained in this news release are "forward-looking
statements" that involve risks and uncertainties. Factors that might cause
the Company's actual results to differ materially from those anticipated in
forward-looking statements are outlined in Nucor's regulatory filings with the
Securities and Exchange Commission, including those in Nucor's December 31,
2007 Annual Report on Form 10-K. The forward-looking statements contained in
this news release speak only as of this date, and Nucor does not assume any
obligation to update them.
SOURCE Nucor Corporation
Nucor Executive Offices, +1-704-366-7000, or fax, +1-704-362-4208
