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Nucor To Acquire Insulated Metal Panels Business From Cornerstone Building Brands

Charlotte, NC - Nucor Corporation (NYSE: NUE) announces that it has signed a definitive purchase agreement to acquire Cornerstone Building Brands' insulated metal panels (IMP) business for a cash purchase price of $1 billion, or approximately 10x pre-pandemic EBITDA inclusive of expected synergies. Adjusting for the net present value of associated tax benefits, the realized effective purchase price for Nucor is approximately $900 million. The transaction is expected to close later this year, pending regulatory approvals.

"Today's announcement accelerates our vision to broaden value-added solutions that Nucor provides to our targeted end markets. Additionally, it enhances our strong financial position with attractive free cash flow conversion rates and accretive EBITDA margins," said Leon Topalian, President and Chief Executive Officer of Nucor. "We are excited about this opportunity to acquire a historical leader and innovator in the quickly growing IMP product category serving the non-residential market. We are committed to finding new and better ways to meet our customers' needs, and this acquisition is an excellent fit with Nucor's long-term strategy to grow our core business and expand our product portfolio."

IMP products are wall and roof panel solutions comprised of an energy efficient foam core sandwiched between two layers of steel or aluminum and are available in a variety of widths, thicknesses and exterior finishes. The IMP business Nucor is acquiring from Cornerstone Building Brands has seven manufacturing facilities located throughout North America. These locations complement the footprint of Nucor Buildings Group, as well as the company's existing IMP business, TrueCore. With this acquisition, Nucor will be purchasing two valued legacy brands, CENTRIA and Metl-Span, which provide a full range of products to service high-end architectural applications to more functional and quickly expanding cold storage and warehousing applications.

As companies and institutions continue to focus on environmental attributes, the superior insulation performance of IMP products reduces energy usage and overall operations-related GHG emissions. Additionally, IMP products are easier to install with lower maintenance costs versus other insulation solutions. The demand for IMP products is expected to build at double digit annual growth rates through this decade and is being driven by evolving consumer preferences regarding e-commerce and grocery delivery, as well as the expansion of data centers and server farms which all require temperature-controlled climates.

"I look forward to enthusiastically welcoming our new teammates from Cornerstone Building Brands to the Nucor family. Adding this business to Nucor Buildings Group will allow us to build upon our recent success with TrueCore," said Jeff Carmean, President of Nucor Buildings Group. "This acquisition will accelerate our growth plans for Nucor Insulated Panel Group and enable us to offer our customers a full suite of solutions."

Moelis & Company LLC served as the exclusive financial advisor and Moore & Van Allen PLLC served as legal counsel to Nucor Corporation for this transaction.

About Nucor Corporation

nucor-logoNucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the U.S., Canada and Mexico. For more information, visit https://nucor.com.

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