Steel Mills

Nucor to Acquire C.H.I. Overhead Doors for $3 Billion

May 16, 2022

Nucor Corp. has agreed in principle to acquire C.H.I. Overhead Doors for $3 billion.

C.H.I. is a leading manufacturer of residential and commercial overhead and rolling doors serving US and Canadian markets, and an affiliate of investment funds managed by Kohlberg Kravis Roberts & Co. L.P. (KKR).

The transaction value represents approximately 13x C.H.I.’s estimated trailing twelve-month EBITDA and is expected to close in June or shortly thereafter, the company said.

“Acquiring C.H.I. is another step in our long-term strategy to expand into areas that are a natural extension of our business and leverage our efficient manufacturing model,” Nucor president and CEO Leon Topalian said. “Acquiring C.H.I. allows Nucor to further enhance its already diverse range of businesses that provide end market solutions to the construction and infrastructure markets.”

The latest move by the steelmaker is in line with its recent acquisitions and diversification into the insulated metal panels (CENTRIA, Metl-Span, and TrueCore) and racking industries (Hannibal Industries and Elite Storage Solutions). Topalian said the move increases Nucor’s “overall long-run value” with businesses that not only fit with the company’s capabilities but have “robust growth prospects.”

C.H.I. has approximately 800 teammates across manufacturing plants in Arthur, Ill., and Terre Haute, Ind., as well as regional warehouses located in California, Colorado, New Hampshire and New Jersey.

The overhead door market is a growing, $5 billion market, Nucor said. C.H.I.’s addition will complement Nucor’s recent string of investments in the value-added warehousing and retail sectors. And it will directly benefit from Nucor’s recent paint line investments at its Hickman, Ark., and Crawfordsville, Ind., sheet mills.

“We believe C.H.I. has great potential to not only continue but accelerate its history of growth and bring supply chain efficiencies by leveraging Nucor’s footprint and existing product channels,” Topalian said.

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.