US-based Worthington Steel to acquire Klöckner & Co for $2.4 billion

US-based Worthington Steel has announced that it will acquire German steel distributor Klöckner & Co in a deal worth $2.4 billion to strengthen its position in the North American metalworking sector.

The deal will be carried out through a voluntary tender offer in Germany and is expected to close in the second half of this year.

Once the deal is complete, Worthington Steel will become the second-largest steel service center company in North America with combined revenues of over $9.5 billion.

«This is a strategic and transformational step in Worthington Steel’s growth journey. Through the acquisition of Klöckner & Co, we will expand our offerings in the high-value metals processing industry and create significant value for our shareholders, deeper relationships with our customers and suppliers, and opportunities for employee growth. Worthington Steel and Klöckner share a focus on operational excellence, innovation, and disciplined execution,» said Jeff Gilmore, president and CEO of Worthington Steel.

Klöckner & Co is a leading service center and metal processing company with approximately 110 branches in North America and Europe. The company offers a wide range of products, including flat and long products, electrical steel, aluminum, and stainless steel. Over the past few years, it has been transitioning to high value-added processing and manufacturing through mergers and acquisitions, as well as strategic growth initiatives.

Klöckner & Co confirmed negotiations with Worthington Steel regarding a possible acquisition in December last year. At that time, it was noted that the American side was conducting a financial audit of the German company’s activities.