Nucor Corporation announced Monday that it has entered into an agreement to acquire Magnatrax Corporation, a leading supplier of fabricated steel to the North American commercial construction market, for US$280 million in cash.
The company says that the transaction is expected to close during the third quarter of 2007 and will boost earnings immediately.
Magnatrax operates seven fabricating plants along with associated engineering service centers and transportation facilities across the US, providing custom-engineered metal building systems for the North American non-residential construction market.
"The acquisition of Magnatrax is an important growth opportunity for one of our core downstream businesses," said Dan DiMicco, Nucor's Chairman, President and Chief Executive Officer, in a statement released by the company Monday. "Although Nucor is already a major national player in the metal buildings business, the addition of the Magnatrax brands, facilities and, most importantly, people, significantly enhances Nucor's market position."
Magnatrax's products include primary and secondary wall and roof panels as well as architectural metal roofing systems for new and retrofit construction. Magnatrax also sells third party metal building components, such as doors and skylights, and provides related transportation services.