Steel Mills
Nucor Completes Acquisition of Gallatin Steel
Written by Sandy Williams
October 9, 2014
Nucor Corp. has completed the acquisition of Gallatin Steel Company in Ghent, Ky., for a purchase price of approximately $770 million. Gallatin’s strategic location on the on the Ohio River will expand Nucor’s access to the Midwest flat-rolled steel market and strengthen its position in the pipe and tube sector.
Gallatin Steel has an annual capacity of 1.8 million tons of hot rolled steel which will increase Nucor’s total flat-rolled production to approximately 13 million tons annually. The mill’s Ohio River location will allow receipt of DRI from Nucor’s Louisiana plant.
“We are pleased to welcome the Gallatin team to the Nucor family. This addition will allow us to better serve our customers by offering them a wider range of products and further enhancing our reliability,” said John Ferriola, Chairman, CEO and President of Nucor Corporation. “The timing of the closing is beneficial as it enables us to capitalize on synergies between the two companies during the current contract negotiation season for raw materials, alloy and consumables and steel sales.”
John Farris has been appointed Vice President and General Manager of Nucor Steel Gallatin. Farris previously held the position of Vice President and General Manager of Nucor Steel Texas, a bar mill in Jewett.
The purchase price, when adjusted for the net present value of the anticipated tax benefits, is approximately $630 million and is expected to be immediately accretive to cash flow and earnings.
The flat-rolled mini-mill includes a twin-shell DC electric arc furnace, a ladle metallurgy facility, a thin-slab continuous caster and a six-stand hot finishing mill.
Sandy Williams
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