Electric arc furnace (EAF) steelmaker Nucor is expanding its downstream capabilities with the purchase of a manufacturer of residential and commercial overhead doors.
Nucor is spending $3bn to acquire CHI Overhead Doors from investment fund Kohlberg Kravis Roberts, the company said.
The deal is expected to close in June. The acquisition adds CHI Overhead Doors' two manufacturing facilities in Arthur, Illinois, and Terre Haute, Indiana, to Nucor's manufacturing base. The acquisition also includes five warehouses, two in California and one each in Colorado, New Hampshire, and New Jersey.
Nucor expects to see benefits from integrating CHI Overhead Doors production with Nucor's paint line investments at its Hickman, Arkansas, and Crawfordsville, Indiana, steel mills.
In Indiana Nucor is spending $290mn to build a 300,000 short tons (st)/yr construction grade continuous galvanizing line and a 250,000st/yr prepaint line. In Arkansas, Nucor recently commissioned a 500,000st/yr galvanizing line.
In the last year Nucor has spent billions of dollars buying up downstream manufacturers, most recently with the $75mn purchase of steel rack manufacturer Elite Storage Solutions, and prior to that in July 2021 the $370mn acquisition of racking manufacturer Hannibal Industries. In June 2021, Nucor bought the insulated metal panels business of Cornerstone Building brands for $1bn.
