Acquisition of Gallatin Steel to boost Nucor's flat-rolled products output

WINCHESTER (Scrap Monster): Nucor Corp. has reached an agreement with Arcelor Mittal and Gerdau SA to purchase Ghent, Kentucky-based Gallatin Steel Co. The acquisition is likely to give significant boost to the company’s flat-rolled products output. The Charlotte, N.C-based steel major has agreed to pay nearly $770 million in cash towards acquisition of the facility.

The deal is said to be one of the largest transactions in the US steel industry. The acquisition of Gallatin Steel with annual production capacity of 1.8 million tons is expected to increase Nucor’s annual capacity by nearly 16% to 13 million tons per annum. The deal is also expected to help Nucor broaden its presence in the Midwest region by serving larger number of customers from pipe and tube segment. Incidentally, Nucor has been constantly looking forward to acquisitions and portfolio expansions as part of its strategy for profitable growth.

Established in 1195, Gallatin, located on the banks of the Ohio River, manufactures high quality steel products such as hot band coils. Gallatin Steel is a joint venture between ArcelorMittal and Gerdau Ameristeel.

Nucor is North America's largest recycler of any material and is the largest steel producer in the US. It mainly produces carbon- and alloy-steel products at its facilities in the U.S. and Canada.