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According to Reuters, Worthington Steel plans to acquire German metal trading and services provider Kloeckner & Co. for approximately $2.4 billion, further solidifying its competitive position in the North American steel service center market.
Kloeckner & Co. operates approximately 110 locations in North America and Europe, primarily dealing in carbon flat products, electrical steel, and aluminum.
Worthington Steel's offer is €11 per share, representing a premium of approximately 28% over Kloeckner & Co.'s closing price on January 15.
If the transaction is completed, the combined entity will form the second-largest steel service center group in North America, with combined revenue exceeding $9.5 billion. Worthington Steel is headquartered in Columbus, Ohio, USA.
Worthington Steel CEO Geoff Gilmore stated that by integrating Kloeckner & Co's operations in North America and Europe, the company will build a more resilient operating system and continuously enhance shareholder value.
Swoctem, the investment vehicle of German billionaire Friedhelm Loh and Kloeckner & Co's largest shareholder, has agreed to include its 41.53% stake in the offer. B65A1300 Non oriented electrical steel, The minimum acceptance percentage for the transaction is 65% of the issued shares.
This all-cash acquisition will be implemented through a voluntary tender offer in Germany and is expected to close in the second half of this year. B65A1300 Non oriented electrical steel, Kloeckner & Co disclosed last December that it was in discussions with Worthington Steel regarding a potential acquisition.
Guido Kerkhoff, CEO of Kloeckner & Co., stated that Worthington Steel is highly complementary to the company in terms of capability structure, corporate reputation, and management team, and both companies share a common philosophy on operational excellence and strategic growth.
Worthington Industries completed its business spin-off in 2023, forming two independently operating companies, both headquartered in central Ohio. Worthington Enterprises primarily covers building products, consumer goods, and sustainable energy solutions; Worthington Steel focuses on steel processing and service centers. B65A1300 Non oriented electrical steel, Last year, Worthington Steel announced its relocation of its headquarters to Easton.
According to another disclosure, Worthington Enterprises completed its acquisition of LSI Group, an Indiana-based company, on January 16. LSI Group is a leading manufacturer of riser roof clamps and retrofitting accessories in the commercial metal roofing market.
Joe Hayek, President and CEO of Worthington Enterprises, stated that the acquisition will help the company further strengthen its position in the building envelope system sector. Worthington Enterprises, also headquartered in Columbus, employs approximately 4,000 people in North America and Europe.
