On June 3, 2024, top steel manufacturer,Nucor Corporation, announced that it has bought commercial door manufacturer and seller, Rytec Corporation. Further to theagreemententered into by both parties, Nucor paid $565 million in cash for the acquisition.
Nucor has recently made many efforts to expand its offerings from raw materials to finished goods by investing in relevant downstream businesses.
Nucor Buys Rytec Corporation
Nucor execs expressed excitement at adding Rytec to its growing list of downstream businesses, and welcoming its 300 members of staff working from two Wisconsin manufacturing facilities.
The $565 million cash acquisition is roughly 12.5 times Rytec’s earnings before interest, taxes, depreciation, and amortization for 2024.
Rytec Corporation
Founded in 1985, in Addison, IL, with current headquarters in Jackson, WI, Rytec Corporation is known for manufacturing high-speed folding doors, and notably, the first heavy-duty, high-speed Spiral® rigid rolling door in 1990.
The company’s high-quality doors are designed for durability, safety, and efficiency. The company has serviced many industries, including automotive, garages, warehouses, and manufacturing facilities and factories. It also makes doors for cold storage, food and beverage, and clean rooms.
Nucor Corporation
Based in Charlotte, NC, Nucor Corporation is the largest manufacturer of steel and steel products in the USA, and the 16th in the world. It’s also the largest scrap recycler in North America, and reported a revenue of $34.7 billion in 2023. This latest buy-out comes after the company’s $3 billion acquisition ofC.H.I Overhead Doors, and many other efforts to bolster operations.
At the end of 2022, the companyinvested $425 millionin an expansion of its South Carolina site, and announced plans to open a$350 million micro millthat would create180 new jobsin NC. In early 2024, it opened a new $125 millionfactory in Alabama, and in January of this year, thecompany boughtSouthwest Data Products for $115 million.
Nucor’s Acquisition of Rytec Corporation
Nucor’s Chair, President, and CEO, Leon Topalian, praised Rytec’s status as a leader in its sector, and noted that the acquisition showcases Nucor’s focus on downstream businesses, cross-selling opportunities, and commercial portfolio expansion.
Chad Utermark, Nucor’s Executive Vice President of New Markets and Innovation added that, along with its recent acquisition of C.H.I. Overhead Doors, Nucor is confident that Rytec will help Nucor’s vision of product development with advanced technology and innovation to offer commercial customers top quality, efficient, and safe products.
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