Nucor agrees to acquire Verco for $180 million

Nucor Corporation announced September 12 that it has entered into an agreement to purchase substantially all of the assets of Verco Manufacturing Company ("Verco") for a cash purchase price of approximately $180 million, subject to post-closing adjustments. Completion of the acquisition will occur after satisfactory resolution of regulatory approvals and other closing conditions. The transaction is expected to close during the fourth quarter of 2006 and is expected to be immediately accretive to earnings.

Verco produces steel floor and roof decking at three locations in the western United States: Phoenix; Fontana, Calif.; and Antioch, Calif. Nucor's Vulcraft Group is the largest U.S. manufacturer of steel deck. With the addition of the Verco facilities, Nucor's total annual deck capacity will exceed 500,000 tons.

"The acquisition of Verco is an extremely attractive growth opportunity to enhance Nucor's market leadership position in steel deck and to expand our highly profitable vertical integration business model. Nucor's downstream value-added businesses have consistently generated very attractive returns on assets through the economic cycle," said Daniel R. DiMicco, Nucor's chairman, president and chief executive officer.

Hamilton Lott Jr., executive vice president, stated, "We are looking forward to adding the Verco Team to the Nucor family. Verco has built an impressive 40-year record of success serving the western U.S. deck market. This acquisition will position Nucor with a national reach to provide U.S. non-residential construction markets with a complete package of joist and deck products."

Nucor and affiliates are manufacturers of steel products, with operating facilities in seventeen states. Products produced are: carbon and alloy steel - in bars, beams, sheet and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing.