Nucor Corporation announced today that its wholly owned subsidiary, Harris Steel Inc. (Harris), has entered into an agreement with Barker Steel Company, Inc. (Barker), to form a new entity that combines the two companies' rebar fabrication operations in the northeastern U.S. market.
Harris will contribute its two northeastern U.S. facilities (located in Bethlehem, PA and Boston, MA) and cash for a 90% equity interest in the new venture. In exchange for a 10% interest in the venture, Barker will contribute its eight northeastern U.S. facilities (located in Albany, NY; Canaan, NH; South Windsor, CT; Avenel, NJ; Deerfield, MA; Westfield, MA; Canton, MA; and Pawtucket, RI). The Barker facilities have total rebar fabrication annual capacity of approximately 218,000 tons. The transaction is expected to close in the fourth quarter of 2007 and is expected to be immediately accretive to earnings.
Additionally, in August 2007, Harris completed the acquisition of Consolidated Rebar, Inc. Consolidated has two rebar fabrication facilities in Arizona (Phoenix and Tucson), with total annual capacity of 32,000 tons. And, in June 2007, Harris acquired South Pacific Steel Corporation. Located in Kapolei, HI, South Pacific Steel has annual rebar fabrication capacity of approximately 29,000 tons.
"We are excited to welcome the Barker, Consolidated and South Pacific Steel employees to the Harris Team - and to the Nucor Family," said Hamilton Lott, Nucor Executive Vice President. "Just as we expected, Harris is already proving to be a powerful growth platform for Nucor in the rebar fabrication business. As North America's largest rebar producer, Nucor is extremely well- positioned for profitable growth downstream in rebar fabrication. With the completion of the Barker joint venture, Harris Steel's annual rebar fabrication capacity will exceed 1 million tons."