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Nucor to acquire C.H.I. Overhead Doors from KKR

May 16, 2022 - Nucor Corp., Charlotte, North Carolina, announced that it has entered into an agreement with an affiliate of investment funds managed by Kohlberg Kravis Roberts & Co. L.P. to acquire C.H.I. Overhead Doors, manufacturer of overhead doors for residential and commercial markets in the United States and Canada. The transaction is valued at $3.0 billion, which represents approximately 13x C.H.I.'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 be immediately accretive to earnings in its first year of ownership.

"Acquiring C.H.I. is another step in our long-term strategy to expand into areas that are a natural extension of our business and leverage our efficient manufacturing model. C.H.I. is a highly profitable organization built with an amazing team and culture. It has consistently proven its strength and competitive advantages due to its broad product suite, very short lead times, robust delivery infrastructure and focused customer service," said Leon Topalian, president and chief executive officer of Nucor Corp. "Acquiring C.H.I. allows Nucor to further enhance its already diverse range of businesses that provide end market solutions to the construction and infrastructure markets. As with the acquisitions Nucor made in the past year in insulated metal panels and racking, C.H.I. increases the overall long-run value of the organization with businesses that have strong free cash flow characteristics, robust growth prospects and fit with Nucor's capabilities."

C.H.I. 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, C.H.I. is able to maintain minimal inventory levels and realize industry-leading fulfillment times, while providing direct delivery to customers.

The overhead door market is a growing $5 billion market that has both residential and non-residential exposure through new builds and repair and remodel applications. 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 C.H.I. acquisition will also benefit from Nucor's recent paint line investments at its Hickman, Arkansas, and Crawfordsville, Indiana, sheet mills.

"We believe C.H.I. has great potential to not only continue but accelerate its history of growth and bring supply chain efficiencies by leveraging Nucor's footprint and existing product channels. Our companies have strong cultural similarities, and we are excited that the senior management team will continue to lead the company. We look forward to working with C.H.I.'s experienced team to realize these market opportunities and grow the business," said Topalian.

Moelis & Company LLC served as financial advisor and Moore & Van Allen PLLC served as legal counsel to Nucor Corp. for this transaction.

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