Charlotte-based Nucor Corporation has just announced plans to buy garage door maker C.H.I. Overhead Doors from private equity firm KKR for a cool $3.0 billion ($2.4 billion more than what KKR paid for the company back in July of 2015).
The roughly 800 employees at the company are fractional shareholders, so when the deal closes, a total of $360 million will be paid out to workers (receiving between $20,000 and $800,000 per person, depending on their position in the company).
This is wild: “CHI’s hourly employees, including those who build and deliver its doors, will make between $20,000 and $800,000 apiece before taxes when the deal closes.”https://t.co/mZHvW4odRe
— Natalie Kitroeff (@Nataliekitro) May 16, 2022
According to a press release, the transaction is expected to close in June or shortly thereafter, pending regulatory approvals and customary closing condition.
“Acquiring C.H.I. is another step in our long-term strategy to expand into areas that are a natural extension of our business and leverage our efficient manufacturing model,” said Nucor CEO Leon Topalian. “Acquiring C.H.I. allows Nucor to further enhance its already diverse range of businesses that provide end market solutions to the construction and infrastructure markets. As with the acquisitions Nucor made in the past year in insulated metal panels and racking, C.H.I. increases the overall long-run value of the organization with businesses that have strong free cash flow characteristics, robust growth prospects and fit with Nucor’s capabilities.”
The C.H.I. Overhead Doors company manufactures and sells overhead door products for residential and commercial applications, including rolling steel and rubber doors for commercial and industrial customers. They have 2 manufacturing plants in Arthur, Illinois, and Terre Haute, Indiana, and regional warehouses located in California, Colorado, New Hampshire and New Jersey.