Steel Mills
Nucor to Acquire C.H.I. Overhead Doors for $3 Billion
Written by David Schollaert
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
Read more from David SchollaertLatest in Steel Mills
ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.
AISI: Raw steel production ticks back down
US raw steel output declined last week after increasing the week prior, according to the latest data from the American Iron and Steel Institute (AISI). Output has see-sawed from week to week since mid-August. Still, it has remained historically strong over the past four months and has held near multi-year highs since June. Domestic mills […]
Gerdau reshapes North American footprint as tariffs squeeze long steel imports
Gerdau is repositioning its North American business to capitalize on a sharp shift in steel trade flows driven by elevated tariffs across the US, Canada, and Mexico.
CRU: Interest in AHMSA is growing
Representatives of at least six companies interested in acquiring AHMSA have reportedly begun to carry out physical inspections of the insolvent company’s assets.
USW urges Algoma to diversify product line as $500M lifeline meets wider Q3 losses
The United Steelworkers (USW) is pushing for transparency after Algoma Steel announced earlier this week that it has received CA$500 million in financing from the Canadian government.