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
Despite trade chaos, Barry Schneider upbeat on SDI, steel
With 30 years of experience at Steel Dynamics, Barry Schneider reflects on the company and the state of the steel industry.
Algoma Steel seeks CAD$500M in operational support
Algoma Steel applied to Canada’s federal Large Enterprise Tariff Loan (LETL) program for $500 million to support its long-term operations.
SDI concerned with potential Brazil pig iron tariffs
Steel Dynamics Inc. (SDI) executives called a 50% tariff on Brazilian pig iron “concerning,” but think tariffs will be a “mainstay” of trade agreements going forward.
SDI earnings slip in Q2 as trade volatility hits customer orders
SDI profits slipped in second quarter amid trade policy volatility.
Cliffs puts ‘for sale’ signs up after another big quarterly loss
Cleveland-Cliffs lost more than $400 million for the third consecutive quarter but predicted results would improve in the second half of the year. And shares of the Cleveland-based steelmaker surged after company executives said during its Q2 earnings call on Monday that they could make billions by courting foreign investors or selling assets.