Nucor to acquire rack manufacturer Hannibal Industries
Acquisition seen as complementary to Nucor's products such as beams, joists and deck, metal buildings and insulated metal panels
Nucor Corporation announced today that it has entered into an agreement to purchase Hannibal Industries, Inc. for $370 million, which represents 6.9x EBITDA for the trailing-twelve months ended March 2021.
The company is a leading national provider of racking solutions to warehouses and serves the e- commerce, industrial, food storage and retail segments. Pending approvals, Nucor will purchase 100 percent of Hannibal Industries’ outstanding shares from its Employee Stock Ownership Plan (ESOP).
“Acquiring Hannibal Industries gives us a new growth platform and broadens our offering to the fast-growing warehouse channel, and complements our current product capabilities, including beams, joists and deck, metal buildings and insulated metal panels,” said Leon Topalian, President and Chief Executive Officer of Nucor Corporation. “This acquisition reflects our strategy of expanding beyond our core steel businesses and establishes a new area for Nucor to pursue a market leadership position.”
Hannibal Industries has manufacturing facilities in Los Angeles and Houston, as well as three distribution centers. It utilizes sheet and bar steel, as well as steel decking, wire deck and fasteners to produce its racking solutions, providing potential supply chain efficiencies with other Nucor businesses. In addition to manufacturing racking solutions, Hannibal Industries works closely with customers during the construction and design phases of a warehouse build- out by offering turn-key services such as installation, procurement and facility integration.
“Acquiring Hannibal Industries further deepens our ability to serve warehouse and distribution customers when coupled with our pending purchase of Cornerstone Building Brands’ insulated metal panels business,” said Rex Query, Executive Vice President, Sheet and Tubular Products. “In addition, having been an employee-owned company, we believe Hannibal Industries will be a natural fit with Nucor’s teammate-centered company culture.”
Earlier this year, Hannibal Industries announced that due to the ecommerce boom, it has grown its warehouse rack manufacturing output by more than 35 percent year-over-year.
