Cornerstone Sells Insulated Metal Panels Business to Nucor

The transaction includes the transfer of seven North American manufacturing facilities, three offices, and a product innovation center.

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Cornerstone Building Brands entered a definitive agreement to sell its Insulated Metal Panels (IMP) business to Nucor Insulated Panel Group and certain of its subsidiaries in a cash transaction for $1 billion. The transaction includes products sold under the Metl-Span and Centria brands and is expected to close in the second half of 2021.

“We believe this transaction creates immediate, substantial value for our shareholders and highlights immense value that exists within the Cornerstone Building Brands portfolio,” James Metcalf, chairman and CEO of Cornerstone Brands, said in a prepared statement. “We have cultivated our IMP business into a market leader with strong assets. The IMP business is a better strategic fit with Nucor, who is well-positioned to take the business even further. We will continue to focus on investing in our core growth markets and driving value through our primary selling channels.”

The IMP business manufactures insulated metal panels in North America, a lightweight cladding solution servicing subsectors within the non-residential end market. Cornerstone will sell seven manufacturing facilities, three offices, and a product innovation center in North America as part of the transaction with Nucor. The facilities and approximately 830 employees will continue to operate in the ordinary course until closing, according to Cornerstone.

In addition to the sale of the IMP business, Nucor and Cornerstone Building Brands will enter a long-term agreement which will enable Cornerstone to continue offering IMP products as part of its metal buildings and components product offerings.

Cornerstone reported its IMP business contributed $335 million of the company’s sales for the trailing 12 months ended April 3, 2021. The company expects post-tax transaction proceeds of approximately $750 million to be used to pay down a portion of its secured credit facilities, invest in organic growth and efficiency projects, and fund strategic acquisitions.

Based in Cary, N.C., Cornerstone Building Brands is a manufacturer of exterior building products for residential and low-rise non-residential buildings in North America.

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