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NUCOR News Release
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NUCOR SIGNS AGREEMENT TO PURCHASE BIRMINGHAM STEEL ASSETS
Charlotte, North Carolina, May 30, 2002 - - - Nucor Corporation (NYSE: NUE)
today announced that it and Birmingham Steel Corporation ("Birmingham
Steel") have signed a definitive agreement for Nucor's acquisition of
substantially all of Birmingham Steel's assets for $615 million in cash.
Daniel R. DiMicco, Nucor Vice Chairman, President and Chief Executive
Officer, said, "We are pleased to have reached agreement with Birmingham
Steel. We believe that the purchase price, which includes approximately
$120 million of accounts receivable and inventory, represents another
attractive purchase for Nucor. We expect that this transaction will be
accretive to Nucor shareholders within twelve months of its completion and
that it will also benefit our customers and employees, as well as the
customers and employees of Birmingham Steel. We will begin immediately to
work with Birmingham Steel's management to develop a plan for a seamless
transition. We look forward to closing the transaction and welcoming the
current employees, vendors and customers of Birmingham Steel into the Nucor
family."
The transaction will require that Birmingham Steel file for Chapter 11
bankruptcy pursuant to a pre-arranged plan. Nucor, Birmingham Steel and its
secured creditors have agreed on the pre-arranged plan to be submitted to
the Delaware bankruptcy court. Closing will occur after receiving the
approval of the court and necessary regulatory rulings. We expect closing
to occur late in the fourth quarter of 2002.
Assets to be included in the purchase are Birmingham Steel's four
operating mills in Birmingham, Alabama, Kankakee, Illinois, Seattle,
Washington and Jackson, Mississippi, with an estimated combined annual
capacity of approximately 2.0 million tons. Other included assets are the
corporate office located in Birmingham, Alabama; the mill in Memphis,
Tennessee, which is currently not operating; the assets of Port Everglades
Steel Corporation; the assets of the Klean Steel Division; Birmingham
Steel's ownership in Richmond Steel Recycling Limited; as well as all
inventory and receivables related to the acquired assets.
Nucor is the largest steel producer in the United States and is the
nation's largest recycler. Nucor and affiliates are manufacturers of steel
products, with operating facilities in ten states. Products produced are:
carbon and alloy steel - in bars, beams, sheet and plate; steel joists and
joist girders; steel deck; cold finished steel; steel fasteners; metal
building systems; and light gauge steel framing.
The statement made in this news release regarding the earnings
projections following the contemplated transaction is a forward-looking
statement that involves risks and uncertainties. Although the Company
believes that it is based on reasonable assumptions, there can be no
assurance that other factors will not affect the accuracy thereof. Such
factors include, among others, general economic conditions; market demand
for steel products; availability and costs of electricity, natural gas and
raw materials; U.S. and foreign trade policies affecting steel imports or
exports; significant changes in governmental regulations affecting
environmental compliance; the operations of Birmingham Steel prior to
closing; and regulatory and court approvals necessary for consummation of
the contemplated transaction. The forward-looking statement contained in
this news release speaks only as of this date, and the Company does not
assume any obligation to update it.
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Nucor Executive Offices: 2100 Rexford Road, Charlotte, North Carolina 28211
Phone 704-366-7000 Fax 704-362-4208 www.nucor.com
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