Nucor Signs Deal to Acquire Birmingham

Nucor Corporation and Birmingham Steel Corp. have signed a definitive agreement for Nucor's acquisition of substantially all of Birmingham Steel's assets for $615 million in cash.

Daniel DiMicco, Nucor vice chairman, president and CEO, said, "We are pleased to have reached agreement with Birmingham Steel. We believe that the purchase price, which includes approximately $120 million of accounts receivable and inventory, represents another attractive purchase for Nucor.

The transaction will require that Birmingham Steel file for Chapter 11 bankruptcy pursuant to a pre-arranged plan. Nucor, Birmingham Steel and its secured creditors have agreed on the pre-arranged plan to be submitted to the Delaware bankruptcy court. Closing will occur after receiving the approval of the court and necessary regulatory rulings.

Assets to be included in the purchase are Birmingham Steel's four operating mills in Birmingham, Ala.; Kankakee, Ill.; Seattle; and Jackson, Miss., with an estimated combined annual capacity of about 2 million tons. Other included assets are the corporate office in Birmingham; the idled mill in Memphis, Tenn.; the assets of Port Everglades Steel Corp.; the assets of the Klean Steel Division; Birmingham Steel's ownership in Richmond Steel Recycling Ltd.; as well as all inventory and receivables related to the acquired assets.

(to read an exclusive interview with DiMicco, click on the following link -- Nucor Interview)