With the Gallatin mini-mill, Nucor will boost its group-wide flat rolled capacity by 16% to an annual total of roughly 13 million tons [see associated article].

"Gallatin is a great fit for Nucor and our sheet mill group," which excluding Gallatin comprises four flat rolled mills, says Ladd Hall, Nucor executive vp of flat rolled products. “Importantly, it will enhance [our] current position serving flat rolled customers in the growing pipe and tube segment,” adds group ceo and chairman, John Ferriola.

The mini-mill is in Gallatin county, where it is strategically located on the Ohio river in Ghent, Kentucky: Its roughly 1.8m tons/y capacity broadens Nucor's footprint in the important Midwest region, the buyer adds in a statement sent to Kallanish.

The deal is tagged at a cash price of around $770m. “Adjusting for the net present value of the anticipated tax benefits, the realised effective purchase price [to] Nucor is approximately $630m,” the company adds. “We believe this transaction will create excellent value for our shareholders, as the purchase price represents a multiple of […] approximately 5.3 times estimated 2015 ebitda before synergies net of anticipated tax benefits," adds Ferriola.

Nucor and its affiliates make carbon and alloy steel in bars, beam, sheet and plate, sheet piling, rebar, cold finished steel, fasteners, plus wire and wire mesh, primarily in the US and Canada. Through The David J Joseph Company, the group also brokers ferrous and non-ferrous metals, pig iron and HBI/DRI, supplies ferroalloy, and processes ferrous and non-ferrous scrap. Nucor is North America's largest recycler, the statement concludes.