US steel group Nucor to acquire ArcelorMittal unit for $605m

US steel and steel products manufacturer Nucor Corporation (NYSE:NUE) said that it had agreed a deal for Skyline Steel LLC, a subsidiary of Luxembourg-based sector player ArcelorMittal (AMS:MT).

Nucor will acquire the business and its affiliates for a total consideration of about USD605m (EUR477m).  Skyline Steel will become a wholly owned Nucor subsidiary, continuing to operate from its base in Parsippany, New Jersey. It will remain the exclusive North American and Caribbean distributor of ArcelorMittal’s piling and foundation products.

The transaction is expected to close as soon as the parties obtain the necessary regulatory approvals and all closing conditions are met. Nucor expects the deal to deliver substantial synergies and enhance its financial results in the next fiscal year.

Skyline Steel is a major steel foundation distributor for customers operating in the US, Canada, Mexico and the Caribbean. Its products are used in the most challenging construction and infrastructure segments such as marine construction, bridge and highway construction, heavy civil construction, storm protection, underground commercial parking and environment containment.

Nucor chairman and chief executive Daniel R. DiMicco stated that his company was thrilled to be acquiring a business that had been its trusted piling products distribution partner for more than 20 years.

Thanks to its robust distribution network, top-quality customer service and excellent technical support, Skyline Steel is in a good position to expand further its North American piling and foundation products business, DiMicco said.