Nucor to buy garage doors manufacturer C.H.I. Overhead Doors for $3bn from KKR
Nucor Corporation has agreed to acquire C.H.I. Overhead Doors, a manufacturer of garage doors, from an affiliate of investment funds managed by Kohlberg Kravis Roberts & Co. L.P. (KKR) for $3 billion.
Based in Illinois, C.H.I. Overhead Doors caters to the residential and commercial markets in the US and Canada.
The company manufactures overhead door products as well as rolling steel and rubber doors for industrial and commercial customers. It has a workforce of around 800 people working across two manufacturing plants in Arthur in Illinois, and Terre Haute in Indiana, and regional warehouses in California, New Hampshire, Colorado, and New Jersey.
Leon Topalian — President and CEO of Nucor Corporation said: “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.
“C.H.I. is a highly profitable organization built with an amazing team and culture. It has consistently proven its strength and competitive advantages due to its broad product suite, very short lead times, robust delivery infrastructure and focused customer service.
“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.”
The deal, which is subject to regulatory approvals and customary conditions, is likely to close next month or shortly thereafter.
KKR said that the deal marks one of its largest returns in recent history, yielding 10 times the original price for the acquisition, inclusive of distributions. The global investment firm acquired C.H.I. Overhead Doors from middle-market private equity firm FFL in 2015 for an undisclosed price.
Pete Stavros — KKR Co-Head of Americas Private Equity said: “As we considered the company’s next chapter, it was of the utmost importance to not only find a strategic partner who could further build on C.H.I.’s strong performance and growth, but also one who would continue to prioritize the backbone of the business – its workforce.
“We were approached many times over the years by many prospective acquirers but Nucor was without question the right home for the business. By joining forces with Nucor, C.H.I. will continue to be part of an employee-centric organization that not only shares its growth ambitions but also provides all employees an opportunity to share in its success.”