Nucor Corp. agreed to acquire Independence Tube Corp. (ITC), an independent manufacturer of hollow structural section (HSS) steel tubing, for $435 million. ITC operates four strategically located state-of-the-art facilities in Illinois and Alabama that annually produce approximately 600,000 tons. ITC purchases hot-rolled coil from suppliers to produce its HSS steel tubing. The company's manufacturing plants are located in close proximity to Nucor's sheet mills in Decatur, Ala.; Crawfordsville, Ind.; and Ghent, Ky. HSS is used in structural and mechanical applications including nonresidential construction, infrastructure, and agricultural and construction equipment end-use markets.
The acquisition will allow Nucor to offer a wider selection of products to its fabricator and service-center customers and strengthens its presence in the nonresidential construction market. In addition, Nucor is installing a large-diameter tube mill at an existing facility in Iuka, Miss. Adding large-diameter HSS to ITC’s product line will expand its product offerings for HSS solutions in North America.