Oct. 15, 2014
Nucor Completes Gallatin Acquisition
Nucor Corp., Charlotte, N.C., has completed the acquisition of Gallatin Steel Co. for approximately $770 million. Gallatin is a flat-rolled producer located on the Ohio River in Ghent, Ky.
"This addition will allow us to better serve our customers by offering them a wider range of products and further enhancing our reliability," says John Ferriola, chairman, CEO and president of Nucor. "The timing of the closing is beneficial as it enables us to capitalize on synergies between the two companies during the current contract negotiation season for raw materials, alloys and consumables, and steel sales."
Nucor Steel Gallatin has an annual capacity of 1.8 million tons, increasing Nucor's total flat-rolled production to about 13 million tons annually. The acquisition strengthens Nucor's position serving flat-rolled customers in the growing pipe and tube segment.
The mill's location on the Ohio River expands Nucor's footprint in the Midwest market, which is the largest flat-rolled consuming region in the U.S, and gives the company access to all the key markets on the U.S. river system. The mill also complements Nucor's raw materials strategy with its ability to receive DRI from the company's plant in Louisiana.
John Farris has been named vice president and general manager of Nucor Steel Gallatin. Farris previously served as vice president and general manager of Nucor Steel Texas, a bar mill in Jewett.
"I am excited to work with the team at Nucor Steel Gallatin. They are an excellent group that fits very well with Nucor's culture," says Farris. "We are focused on the opportunities we have here to grow Nucor's long-term profitability."