After a drought of activity for more than a year, mergers and acquisitions are again moving to the front burner as companies armed with war chests of cash look to snap up under-capitalized, highly motivated sellers.
Not only has Nucor Corp., Charlotte, N.C., purchased another recycler this week (AMM, March 2), it also announced its intentions to form NuMit LLC, a joint venture with Mitsui & Co. (USA) Inc. (AMM, March 4). In addition, Gibraltar Industries Inc. exited its steel processing business through a sale to Columbus, Ohio-based Worthington Industries Inc. (AMM, Feb. 2).
"This is something that is going to happen. Only the big Kahunas are going to do it and a lot of the little companies are going to go by the wayside because they cannot survive. The ones that can survive are going to make themselves stronger. They are looking for opportunities," a southwestern mill source said.
Steel demand at the start of the year turned out to be more promising.