CHARLOTTE, N.C. (AP) -- Steel producer Nucor Corp. said Tuesday it paid about $185 million to buy Ambassador Steel Corp., which fabricates and distributes reinforcement bars, or rebar, that are used to strengthen concrete.
At closing, Harris Steel also repaid Ambassador's bank debt of about $136 million, which primarily financed the Auburn, Ind.-based company's working capital requirements. Ambassador's working capital, excluding this debt, was approximately $165 million at the end of July.
Buying Ambassador, which last year shipped 422,000 tons of fabricated rebar and distributed another 228,000 tons of reinforcing steel, expands Nucor's presence in the Midwestern, Gulf Coast and southeastern regions of the U.S.
The all-cash deal includes the shares of Ambassador's affiliate, Delta Erecting.
Nucor shares fell 4 cents to $49.98 in morning trading.