Nucor Corporation has agreed to acquire Republic Conduit, a manufacturer of steel electrical conduit in North America, from Luxembourg-based Tenaris S.A. for $335 million, or approximately six times the average of its 2015 and projected 2016 EBITDA. Republic Conduit’s annual shipment volume over this period averages approximately 146,000 tons.
“The purchase of Republic Conduit complements our recent expansion of Nucor’s presence in the pipe and tube market and gives us a new line of value-added products to offer our customers,” said John Ferriola, chairman, chief executive officer and president of Nucor Corporation.
Republic Conduit produces electrogalvanized Electrical Metallic Tubing (EMT) and Intermediate Metal Conduit (IMC), as well as hot-dip galvanized Electrical Rigid Metal Conduit (ERMC). Republic Conduit’s products are primarily used to protect and route electrical wiring in various nonresidential structures such as hospitals, schools, office buildings, hotels, stadiums, churches and shopping malls. The company also serves the power and industrial sectors.
Republic Conduit employs a total of approximately 300 people at 2 non-unionized facilities strategically located in Louisville, Kentucky, and Cedar Springs, Georgia. Once the acquisition is completed, Nucor will be a market leader in steel conduits.
Published in the January 2017 Edition of American Recycler News