Nucor to purchase C.H.I. in $3-billion deal
Nucor Corporation is buying Illinois-based C.H.I. Overhead Doors for $3 billion in a deal expected to close in June.
In a news release on Monday, May 16, the Charlotte-based steel manufacturer said it has entered into an agreement to purchase C.H.I., manufacturer of residential sectional, commercial sectional, and rolling steel doors, from global private equity firm Kohlberg Kravis Roberts & Company.
“Acquiring C.H.I. is another step in our long-term strategy to expand into areas that are a natural extension of our business,” Nucor president and CEO Leon Topalian released in a statement.
Currently they employ approximately 800 employees in two manufacturing plants in Arthur and Terre Haute, Indiana, and regional warehouses located in California, Colorado, New Hampshire, and New Jersey.
All 800 C.H.I. employees became owners in a move KKR made when it acquired the C.H.I. business in 2015.
Hourly employees and truck drivers will receive about $175,000 on average as a payout on their equity, with C.H.I.’s most tenured workers making substantially more. This is on top of about $9,000 in dividends paid out since 2015.
KKR is also giving employees 12 months of pre-paid personal finance coaching and tax preparation services. This will be provided through Goldman Sachs Ayco Personal Finance Management and Ernst & Young.
The purchase is the latest in a series for Nucor. Last month, Nucor acquired steel racking manufacturer Elite Storage Solutions for $75 million, and also announced a new micro steel mill in Lexington, about 60 miles northeast of Charlotte. In August of 2021, they completed a $1 billion acquisition of two insulated metal panel brands from Cary-based Cornerstone Building Brands.
Nucor has been headquartered in Charlotte since 1966 and is the largest steel company in the U.S.
They employ about 800 people in North Carolina and almost 27,000 workers throughout its more than 300 facilities in the U.S., Canada, and Mexico according to their company web page.
C.H.I. just celebrated their 40th year in business last year.
