Nucor to acquire Independence Tube Corp. in $425 million dealStaff Writer | September 19, 2016
Nucor Corporation has agreed to acquire Independence Tube Corporation (ITC), a manufacturer of hollow structural section (HSS) steel tubing, for $435 million, or approximately 6x average EBITDA over the 2013-2015.
Acquisition ITC operates four strategically located facilities
ITC has the second highest market share in HSS, selling its products primarily through service centers, which are also an important channel to market for Nucor. ITC is primarily a producer of HSS and does not focus on products for energy or other pipe and tube segments.
The addition of ITC to Nucor's portfolio will allow Nucor to offer a wider selection of products to its fabricator and service center customers and strengthens the company's presence in the key nonresidential construction market.
ITC operates four strategically located state-of-the-art facilities in Illinois and Alabama that annually produce roughly 600,000 tons and employ approximately 335 teammates. ITC purchases hot-rolled coil from suppliers to produce its HSS steel tubing.
The company's manufacturing plants are located in close proximity to Nucor's sheet mills in Decatur, Alabama; Crawfordsville, Indiana; and Ghent, Kentucky. ■