Sept. 17, 2014
Nucor Acquires Gallatin Steel
Nucor Corp. has agreed to purchase the equity of Gallatin Steel Co., Ghent, Ky., for a cash price of about $770 million. Gallatin is a flat-rolled products mill with an annual capacity of 1.8 million tons.
Founded in 1995, Gallatin’s facility features a two-shell DC electric arc furnace, ladle metallurgy facility, thin-slab continuous caster and a six-stand hot finishing mill. It produces coils up to 64 inches wide.
"Our agreement to purchase Gallatin Steel is a significant step forward in the execution of Nucor's strategy for profitable growth. Importantly, Gallatin will enhance Nucor's current position serving flat-rolled customers in the growing pipe and tube segment," says John Ferriola, chairman, CEO and president of Nucor, Charlotte, N.C.
Located on the Ohio River in Ghent, about halfway between Cincinnati and Louisville, Ky., Gallatin broadens Nucor's footprint in the Midwest. Adding Gallatin to Nucor's four existing flat-rolled mills will increase Nucor's total annual flat-rolled capacity by 16 percent to approximately 13 million tons.
"Gallatin is a great fit for Nucor and our sheet mill group. Our two companies have a strong cultural compatibility, particularly the importance and focus we each put on safety, quality and productivity," says Ladd Hall, executive vice president of Flat-Rolled Products. "The acquisition will further strengthen our ability to meet the needs of all of our flat-rolled product customers."