Nucor Corporation announced on Thursday, August 2, that it has entered into an agreement to acquire cold drawing operation LMP Steel & Wire Company for approximately $28 million in cash.
Maryville, Missouri-based LMP produces cold finished bar and operates related businesses that service the North American construction and original equipment manufacturer (OEM) markets. LMP has an annual production capacity of approximately 100,000 tons.
"The acquisition of LMP is a solid growth opportunity for one of our core downstream businesses. LMP's highly complementary product offering and operations will be a good fit with our existing cold finished business. We look forward to welcoming the LMP employees to the Nucor team", said Dan DiMicco, Nucor's chairman, president and chief executive officer.
The transaction is expected to close during the third quarter of 2007 and is expected to be immediately accretive to earnings.