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
Nucor’s Jellison set to retire, Spicer tapped for EVP role
Nucor said EVP Douglas J. Jellison plans to retire on June 8 after more than 33 years with the company. Randy J. Spicer will be promoted to EVP effective May 12.
Republican Senators demand Biden block USS sale to Nippon
Three vocal Republican senators are demanding that President Joe Biden block the sale of U.S. Steel to Japan’s Nippon Steel.
Stelco reports solid Q1, plans to up value-added output
Stelco reported a positive start to 2024 in its first-quarter earnings report on Thursday. And with steady demand and a stable market, the Canadian flat-rolled steelmaker is optimistic for the remainder of the year.
AISI: Raw steel production inches higher
US raw steel output ticked up last week, according to the latest American Iron and Steel Institute (AISI) data.
Nucor surprises with $65/ton price drop for HRC
Nucor started off May with a bang, dropping its weekly base spot price for hot-rolled (HR) coil by $65 per short ton (st) this week.