Nucor Corporation announced that its wholly owned subsidiary, Harris Steel Inc., has completed the acquisition of the stock of Ambassador Steel Corporation, based in Auburn, Ind., for a cash purchase price of approximately $185 million. The transaction includes the shares of Ambassador's affiliate, Delta Erecting. At closing, Harris Steel also repaid Ambassador's bank debt of approximately $136 million, which primarily financed the company's working capital requirements. Ambassador's working capital, excluding this debt, was approximately $165 million at the end of July.
Ambassador is a fabricator and distributor of concrete reinforcing steel and related products. Founded in 1974, Ambassador has grown to be one of the largest independent fabricators and distributors of rebar in the United States. In 2007, Ambassador shipped 422,000 tons of fabricated rebar and distributed another 228,000 tons of reinforcing steel.
"We are excited and proud to welcome the Ambassador employees to the Nucor and Harris family," said Hamilton Lott, Nucor Executive Vice President. "Ambassador expands our rebar fabrication footprint through the midwestern, Gulf Coast and southeastern regions of the U.S. Just as we expected, Harris Steel has proven to be a powerful downstream growth platform for Nucor. With the addition of Ambassador to the other acquisitions Harris Steel has completed, our rebar fabrication business has more than doubled since Nucor acquired Harris Steel in March of 2007."
Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel - in bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.