Nucor to acquire David J. Joseph
Nucor Corporation has signed a Purchase Agreement to
acquire the stock of SHV North America Corporation, which owns 100% of
The David J. Joseph Company (DJJ), its related affiliates and real estate,
for approximately $1.44 billion. The David J. Joseph Company will be
a wholly-owned subsidiary of Nucor Corporation and will maintain its
headquarters in Cincinnati, Ohio.
The acquisition of DJJ will bring a variety of benefits to Nucor. In
addition to DJJ’s scrap processing operations and expertise, its extensive
brokerage operations will provide Nucor with global sourcing of many
key steelmaking raw materials. DJJ’s rail services and logistics capabilities
will allow Nucor to leverage the largest private railcar fleet in North
America dedicated to scrap transportation. The industrial scrap programs
of DJJ will provide improved channels of raw materials to Nucor.
The addition of DJJ to Nucor’s current scrap processing capabilities
will allow them to process approximately four million tons of ferrous
Currently, DJJ has five main businesses - Brokerage Services, Scrap Processing,
Mill and Industrial Services, Rail Services, and Self Service Auto Parts.
In 2007, the company brokered over 20 million tons of ferrous scrap and
over 500 million pounds of non-ferrous materials. They will process over
3.5 million tons of ferrous scrap in 2008 with twelve shredders in 35
DJJ also owns over 2,000 scrap-related railcars and provides complete
fleet management and logistics services to third parties. In 2007, the
combined David J. Joseph Company’s revenue and adjusted EBITDA were approximately
$6.4 billion and $197 million respectively. Nucor expects the acquisition
to be accretive in 2008.