Steel Mills
Nucor Buys Hannibal Industries for $370 Million
Written by David Schollaert
July 20, 2021
Nucor has agreed to buy racking and hollow structural section (HSS) manufacturer Hannibal Industries Inc. for $370 million.
“Acquiring Hannibal Industries gives us a new growth platform and broadens our offering to the fast-growing warehouse channel,” Nucor President and CEO Leon Topalian said. “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.”
Los Angeles-based Hannibal has manufacturing facilities in Los Angeles and Houston as well as three distribution centers. It has annual capacity of approximately 150,000 tons.
The latest move is Nucor’s fourth acquisition of an HSS manufacturer since 2016. Nucor – the largest steelmaker in North America – also acquired Republic Conduit, Southland Tube and Independence Tube.
“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 Nucor Executive VP of Sheet and Tubular Products Rex Query. “In addition, having been an employee-owned company, we believe Hannibal Industries will be a natural fit with Nucor’s teammate-centered company culture.”
Hannibal Industries uses sheet and bar steel, as well as steel decking, wire deck and fasteners to produce its racking solutions. That provides potential supply-chain efficiencies with other Nucor businesses. In addition to producing racking, Hannibal works closely with customers during the construction and design phases of a warehouse build-out by offering turnkey services such as installation, procurement and facility integration.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Steel Mills
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).
Domestic mill shipments slip in July: AISI
US steel shipments decreased month over month in July, but were up from last year, according to the latest figures from the American Iron and Steel Institute (AISI).