Nucor Acquires Hannibal Industries
By Metal Center News Staff
on Jul 20, 2021
Nucor Corp., Charlotte, N.C., will acquire Hannibal Industries for $370 million. Hannibal is a provider of racking solutions to warehouses, serving the e-commerce, industrial, food storage and retail segments. Pending approvals, Nucor will purchase 100 percent of Hannibal Industries' outstanding shares from its Employee Stock Ownership Plan.
"Acquiring Hannibal Industries gives us a new growth platform and broadens our offering to the fast-growing warehouse channel, and complements our current product capabilities, including beams, joists and deck, metal buildings and insulated metal panels," said Leon Topalian, president and CEO of Nucor Corporation. "This acquisition reflects our strategy of expanding beyond our core steel businesses and establishes a new area for Nucor to pursue a market leadership position."
Hannibal Industries has manufacturing facilities in Los Angeles and Houston, as well as three distribution centers. It utilizes sheet and bar steel, as well as steel decking, wire deck and fasteners to produce its racking solutions, providing potential supply chain efficiencies with other Nucor businesses. In addition to manufacturing racking solutions, Hannibal Industries works closely with customers during the construction and design phases of a warehouse build-out by offering turn-key services such as installation, procurement and facility integration.
"Acquiring Hannibal Industries further deepens our ability to serve warehouse and distribution customers when coupled with our pending purchase of Cornerstone Building Brands' insulated metal panels business," said Rex Query, executive vice president, Sheet and Tubular Products. "In addition, having been an employee-owned company, we believe Hannibal Industries will be a natural fit with Nucor's teammate-centered company culture."