The steel product manufacturing group Nucor Corp. will pay $370 million to acquire racking manufacturer Hannibal Industries Inc. and gain market share in the fast-growing warehouse channel, the company said Tuesday.
Pending approvals, Charlotte, North Carolina-based Nucor will purchase 100% of Hannibal’s outstanding shares from its Employee Stock Ownership Plan (ESOP).
Los Angeles-based Hannibal provides racking solutions to warehouses and serves the e-commerce, industrial, food storage, and retail segments. The company has seen hot growth during the pandemic, growing its warehouse rack manufacturing output by more than 35% between 2019 and 2020. Hannibal managed that growth by adding more than 100 new jobs during 2020 in manufacturing, design and engineering, project management, finance, and sales, the company said.
“Acquiring Hannibal Industries gives us a new growth platform and broadens our offering to the fast-growing warehouse channel, and complements our current product capabilities, including beams, joists and deck, metal buildings, and insulated metal panels,” Leon Topalian, president and CEO of Nucor, said in a release. “This acquisition reflects our strategy of expanding beyond our core steel businesses and establishes a new area for Nucor to pursue a market leadership position.”
Hannibal has manufacturing facilities in Los Angeles and Houston, as well as three distribution centers.