Nucor to acquire Southland Tube

Nucor Corp., Charlotte, has agreed to acquire Southland Tube, an independent manufacturer of hollow structural section (HSS) steel tubing, for $130 million

"The acquisition of Southland Tube is an excellent fit for our Nucor family and our strategy for profitable growth," says John Ferriola, chairman, CEO and president of Nucor. "It complements our recent acquisition of Independence Tube in the HSS steel tubing market. We see this market as a great opportunity to leverage Nucor's capabilities and strengths while also adding to our portfolio of products and services for our customers."

HSS is used in a broad array of structural and mechanical applications, including nonresidential construction, infrastructure and heavy equipment end use markets. Southland Tube has one facility located in Birmingham, Alabama. With annual shipments of about 240,000 tons, Southland Tube has the third largest market share in HSS steel tubing.

In 2006, 8 percent of Nucor's total steel mill shipments were to its downstream businesses. The company expects that number to grow to about 20 percent with these acquisitions.

Nucor and its affiliates manufacture steel products. Its product mix include carbon and alloy steel in bars, beams, sheet and plate; hollow structural section tubing; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating; and wire and wire mesh. 

The company, through its David J. Joseph Co. division, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI (hot-briquetted iron/direct-reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap.