Acquisitions

9 Months Ended

Sep. 28, 2024

17. Acquisitions

Acquisition of Rytec Corporation

On July 23, 2024, Nucor used cash on hand to acquire the assets of Rytec Corporation ("Rytec") for a purchase price, net of cash and debt acquired, of approximately $565 million. Rytec is a manufacturer and seller of high-performance overhead doors. Rytec produces spiral metal doors for warehouses, manufacturing facilities, auto dealerships, and parking garages, as well as durable fabric doors that are used in cold storage, manufacturing and clean room applications. We believe this acquisition will help Nucor and C.H.I. Overhead Doors, LLC continue to grow their sales to the commercial market. The Rytec financial results are included as part of the steel products segment (see Note 14) beginning on July 23, 2024, the date Nucor acquired Rytec.

We allocated the purchase price for Rytec to its individual assets acquired and liabilities assumed. While the purchase price allocation is substantially complete, it is still preliminary and subject to change.

The following table summarizes the fair values of the assets acquired and liabilities assumed of Rytec as of July 23, 2024, the date of acquisition (in thousands):


Cash	$	1,263
Accounts receivable		34,812
Inventory		32,477
Other current assets		1,475
Property, plant and equipment		31,948
Goodwill		274,036
Other intangible assets		215,000
Other assets		58
Total assets acquired		591,069
Accounts payable		16,474
Salary, wages and related accruals		5,003
Other current liabilities		4,261
Total liabilities assumed		25,738
Net assets acquired	$	565,331

The following table summarizes the purchase price allocation to the identifiable intangible assets of Rytec as of July 23, 2024, the date of acquisition (in thousands, except years):


			Weighted-
			Average Life
Customer relationships	$	185,000	15 years
Trademarks and trade names		16,000	10 years
Other intangibles		14,000	< 1 year
	$	215,000

The goodwill of $274.0 million is calculated as the excess of the purchase price over the fair values of the assets acquired and liabilities assumed and has been allocated to the steel products segment (see Note 14). The goodwill is attributable to expected synergies within the steel products segment. Goodwill recognized for tax purposes was $274.0 million, all of which is deductible for tax purposes. Pro-forma results of operations for the Company would not be materially different as a result of the acquisition of Rytec and, therefore, this information is not presented.