By Anastasia Tomazhenkova: Steelmaker and scrap metal recycler Nucor Corp. will acquire one of the nation's biggest scrap-metal companies SHV North America Corp., which owns scrap company David J. Joseph Co., for about $1.44 billion, a deal that boosts Nucor's already large profile in the scrap-metals business.
Nucor claimed the addition of David J. Joseph - a scrap metals trading, processing, and transportation company - will allow the combined entity to process about 4 million tons of ferrous scrap annually. Nucor largely uses recycled scrap steel to melt in its electric arc furnaces to make new steel.
David J. Joseph's revenue was about 6.4 billion dollars in 2007. Nucor expects the acquisition to add to earnings in 2008.
In 2007, David J. Joseph's revenue and adjusted earnings excluding items were $6.4 billion and $197 million, respectively. Nucor expects the acquisition to boost earnings this year.
Nucor Chairman and Chief Executive Daniel R. DiMicco said, "With its considerable scale and excellent management team, DJJ offers Nucor a large platform for continued growth in this segment of the industry." He added the firm's current management will remain.
In 2007, David J. Joseph brokered more than 20 million tons of ferrous scrap and more than 500 million pounds of nonferrous materials. It will process more than 3.5 million tons of ferrous scrap in 2008.
On Thursday, Nucor shares closed up 95 cents, or 1.7%, to 56.93 dollars.