CHARLOTTE, N.C., Oct. 8, 2014 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that it has closed on its purchase of all the equity of Gallatin Steel Company for approximately $770 million.

"We are pleased to welcome the Gallatin team to the Nucor family. This addition will allow us to better serve our customers by offering them a wider range of products and further enhancing our reliability," said John Ferriola, Chairman, CEO and President of Nucor Corporation. "The timing of the closing is beneficial as it enables us to capitalize on synergies between the two companies during the current contract negotiation season for raw materials, alloy and consumables and steel sales."

Nucor Steel Gallatin has an annual capacity of approximately 1,800,000 tons, increasing Nucor's total flat-rolled production to about 13 million tons annually. The acquisition strengthens Nucor's position serving flat-rolled customers in the growing pipe and tube segment.

The mill's location on the Ohio River expands Nucor's footprint in the Midwest market, which is the largest flat-rolled consuming region in the U.S, and gives the company access to all the key markets on the U.S. river system. The mill also complements Nucor's raw materials strategy with its ability to receive DRI from the company's plant in Louisiana.

John Farris has been named Vice President and General Manager of Nucor Steel Gallatin. Farris previously served as Vice President and General Manager of Nucor Steel Texas, a bar mill in Jewett.

"I am excited to work with the team at Nucor Steel Gallatin. They are an excellent group that fits very well with Nucor's culture," said Farris. "We are focused on the opportunities we have here to grow Nucor's long-term profitability."

Adjusting for the net present value of the anticipated tax benefits, the realized effective purchase price for Nucor is approximately $630 million. The purchase is expected to be immediately accretive to cash flow and accretive to earnings after working through purchase accounting-valued finished goods inventories.

Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "believe," "expect," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (2) market demand for steel products; (3) energy costs and availability; and (4) competitive pressure on sales and pricing, including competition from imports and substitute materials. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2013 Annual Report on Form 10-K, Item 1A. Risk Factors. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them.

SOURCE Nucor Corporation