Nucor to acquire IMP business of Cornerstone Building Brands for $1bn
US-based steel production company Nucor Corporation has agreed to acquire the insulated metal panels (IMP) business of Cornerstone Building Brands for $1 billion in an all-cash deal.
Insulated metal panel products are wall and roof panel solutions, made up of an energy efficient foam core that is sandwiched between two layers steel or aluminum layers. The products are available in a range of widths, thicknesses, and also exterior finishes.
The insulated metal panels business being acquired by Nucor has seven manufacturing plants across North America. The locations are said to complement the presence of Nucor Buildings Group, and also Nucor’s existing insulated metal panels business – TrueCore.
With the acquisition, Nucor will be buying a couple of valued legacy brands – Metl-Span and CENTRIA, which offer a variety of products to service high-end architectural applications to more functional and rapidly growing cold storage and warehousing applications.
Nearly 830 employees of Cornerstone Building Brands will be transferred to Nucor, as part of the deal.
Nucor to acquire IMP business of Cornerstone Building Brands for $1bn. Photo courtesy of Nucor Corporation.
Leon Topalian – President and CEO of Nucor said: “Today’s announcement accelerates our vision to broaden value-added solutions that Nucor provides to our targeted end markets. Additionally, it enhances our strong financial position with attractive free cash flow conversion rates and accretive EBITDA margins.
“We are excited about this opportunity to acquire a historical leader and innovator in the quickly growing IMP product category serving the non-residential market. We are committed to finding new and better ways to meet our customers’ needs, and this acquisition is an excellent fit with Nucor’s long-term strategy to grow our core business and expand our product portfolio.”
For the trailing 12 months ended 3 April 2021, the IMP business chipped in nearly $335 million of the net sales of Cornerstone Building Brands.
James S. Metcalf – Chairman and CEO said: “We believe this transaction creates immediate, substantial value for our shareholders and highlights the immense value that exists within the Cornerstone Building Brands portfolio.
“We have cultivated our IMP business into a market leader with strong assets. The IMP business is a better strategic fit with Nucor, who is well-positioned to take the business even further.
“We will continue to focus on investing in our core growth markets and driving value through our primary selling channels.”
Headquartered in North Carolina, Cornerstone Building Brands manufactures exterior building products for residential and low-rise non-residential buildings across North America.
Subject to regulatory approvals, the deal is anticipated to be wrapped up in the latter half of this year.