Nucor Corp to acquire top US scrap metal company for $1.44 billion
12 Feb 2008
Mumbai: Nucor Corporation will acquire the North American operations of privately held Dutch conglomerate SHV Holdings NV, to boost its scrap metals business.
SHV North America Corporation owns Ohio-based David J. Joseph Co, which has been Nucor's broker of ferrous scrap since 1969.
The deal will give Charlotte, NC-based Nucor, North America's largest purchaser of scrap and access to DJJ's scrap sources and processing capabilities.
The acquisition will add 4 million tonnes of ferrous scrap processing capacity annually.
"We are extremely excited to announce the acquisition of a company that has been our partner in growth for the last 38 years," said Daniel R. DiMicco, chairman, CEO and president of Nucor.
Nucor, which pioneered the use of electric arc furnaces to make steel from scrap in 1966, sells most of its products to steel service centers, manufacturers and fabricators.
In addition to the scrap and brokerage business, Nucor said DJJ's rail services and logistics capabilities will allow it to leverage the largest private railcar fleet in North America dedicated to scrap transportation.
Nucor has been diversifying its steel operations and last year acquired Canada's Harris Steel Group, a maker of carbon steel reinforcing bars for the construction industry and wire mesh for the mining industry, for $1.1 billion.