North Carolina-based Nucor Corp. (NYSE: NUE) has announced plans to acquire C.H.I. Overhead Doors in Illinois in a deal valued at $3 billion. Nucor, which has multiple locations in Indiana, says the deal includes the overhead door manufacturer’s plant in Terre Haute.
C.H.I. makes both residential and commercial overhead doors, as well as rolling steel and rubber doors for commercial and industrial customers. The company has manufacturing plans in Illinois and Terre Haute, as well as regional warehouses in California, Colorado, New Hampshire and New Jersey, employing about 800 workers in all.
Nucor is purchasing the company from private equity firm Kohlberg Kravis Roberts & Co. The company says the deal is another step in a long-term strategy to expand into areas it deems an extension of its business.
“Acquiring C.H.I. allows Nucor to further enhance its already diverse range of businesses that provide end market solutions to the construction and infrastructure markets,” Nucor CEO Leon Topalian said in written remarks. “As with the acquisitions Nucor made in the past year in insulated metal panels and racking, C.H.I. increases the overall long-run value of the organization with businesses that have strong free cash flow characteristics, robust growth prospects and fit with Nucor’s capabilities.”
Nucor has two facilities in Waterloo and St. John in northeast Indiana, a tubular products facility in Madison, and two facilities in Crawfordsville. In February, the company detailed plans to invest $290 million in its Crawfordsville steel sheet mill and create 80 jobs.
Nucor says the C.H.I. acquisition will benefit from the investment in Crawfordsville, as well as another facility in Arkansas. The deal is expected to close in June or shortly thereafter.