Worthington Steel announced earlier this month that it plans to acquire a German counterpart in a move that would triple its revenue and create the second-largest steel service center in North America.
Under the agreement, Worthington would acquire all outstanding shares of Kloeckner & Co. in a deal with an enterprise value of some $2.4 billion. Company officials said that the deal would establish a combined company with $9.5 billion in revenue, an enhanced product lineup and a broader geographic footprint.
Kloeckner, a provider of carbon flat-roll steel, electrical steel, aluminum, stainless steel and long products, has shifted toward “high value-added processing and fabrication” over the past few years, Worthington officials said. It operates more than 100 locations across Europe and North America.
“This is a strategic and transformative step in Worthington Steel's growth journey,” Worthington Steel President and CEO Geoff Gilmore said in a statement.
“Worthington Steel brings complementary capabilities, a highly respected reputation and an experienced leadership team that shares our focus on operational excellence and strategic growth,” added Kloeckner & Co. CEO Guido Kerkhoff.
