Charlotte North Carolina US headquartered Nucor Corporation has entered into an agreement with an affiliate of investment funds managed by Kohlberg Kravis Roberts & Co to acquire CHI Overhead Doors, a leading manufacturer of overhead doors for residential and commercial markets in the United States and Canada. The transaction is valued at USD 3.0 billion, which represents approximately 13x CHI's estimated trailing twelve-month EBITDA at close. The transaction is expected to close in June or shortly thereafter, pending regulatory approvals and customary closing conditions and immediately accretive to earnings in its first year of ownership.CHI manufactures overhead door products for residential and commercial applications, as well as rolling steel and rubber doors for commercial and industrial customers. The company has approximately 800 teammates across two manufacturing plants in Arthur, Illinois, and Terre Haute, Indiana, and regional warehouses located in California, Colorado, New Hampshire and New Jersey. With a highly diversified national customer network of professional garage door dealers, CHI is able to maintain minimal inventory levels and realize industry-leading fulfillment times, while providing direct delivery to customers.Commercial overhead doors are used in warehousing and retail, areas that Nucor has focused its attention recently through other value-added products such as insulated metal panels (CENTRIA, Metl-Span and TrueCore brands) and steel racking solutions (Hannibal Industries and Elite Storage Solutions). It is expected that the CHI acquisition will also benefit from Nucor's recent paint line investments at its Hickman in Arkansas and Crawfordsville in Indiana, sheet mills.Moelis & Company LLC served as financial advisor and Moore & Van Allen PLLC served as legal counsel to Nucor Corporation for this transaction.
Charlotte North Carolina US headquartered Nucor Corporation has entered into an agreement with an affiliate of investment funds managed by Kohlberg Kravis Roberts & Co to acquire CHI Overhead Doors, a leading manufacturer of overhead doors for residential and commercial markets in the United States and Canada. The transaction is valued at USD 3.0 billion, which represents approximately 13x CHI's estimated trailing twelve-month EBITDA at close. The transaction is expected to close in June or shortly thereafter, pending regulatory approvals and customary closing conditions and immediately accretive to earnings in its first year of ownership.CHI manufactures overhead door products for residential and commercial applications, as well as rolling steel and rubber doors for commercial and industrial customers. The company has approximately 800 teammates across two manufacturing plants in Arthur, Illinois, and Terre Haute, Indiana, and regional warehouses located in California, Colorado, New Hampshire and New Jersey. With a highly diversified national customer network of professional garage door dealers, CHI is able to maintain minimal inventory levels and realize industry-leading fulfillment times, while providing direct delivery to customers.Commercial overhead doors are used in warehousing and retail, areas that Nucor has focused its attention recently through other value-added products such as insulated metal panels (CENTRIA, Metl-Span and TrueCore brands) and steel racking solutions (Hannibal Industries and Elite Storage Solutions). It is expected that the CHI acquisition will also benefit from Nucor's recent paint line investments at its Hickman in Arkansas and Crawfordsville in Indiana, sheet mills.Moelis & Company LLC served as financial advisor and Moore & Van Allen PLLC served as legal counsel to Nucor Corporation for this transaction.
