CHARLOTTE, N.C., May 13 /PRNewswire-FirstCall/ -- Nucor Corporation (NYSE: NUE - News) announced today that it has entered into an agreement to acquire 50% of Duferdofin-Nucor S.r.l., a new joint venture being created with Duferco S.A. for the production of beams in Italy and the distribution of beams in Europe and North Africa. The joint venture will include the Duferco Group's Italian long product production assets and associated distribution companies.Nucor will pay euro 423.5 million (approximately $658 million) for its 50% equity stake in Duferdofin-Nucor. Formation of Duferdofin-Nucor and finalization of the acquisition of the 50% stake by Nucor will occur after satisfactory resolution of any regulatory approvals, the transfer of appropriate permits and other contracts and other closing conditions. The transaction is expected to close during the third quarter of 2008. The investment by Nucor values the new venture at around 6.3 times adjusted EBITDA.
Duferdofin-Nucor will be the leader in beam production in Italy and Southern Europe. Production of beams and other long products from Duferdofin-Nucor's plants in San Zeno, Pallanzeno and Giamorro (all in Italy) exceeded 900,000 MT in 2007. A new merchant bar mill is under construction in Giamorro and is expected to be operational in late 2008. Additional investments in the Italian operations are under review by the two companies.
Nucor is the largest producer of beams in North America, with a 2007 total production of approximately three million tons. Nucor is recognized as a world leader in the efficient combination of technology and people to serve its customers with the highest quality products and service. As part of the contemplated joint venture, Nucor will bring its considerable technical and commercial expertise.
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