Worthington Steel has raised $1.4 billion to acquire Klöeckner

The company notes that all regulatory conditions for closing the deal have already been met

The U.S.-based Worthington Steel has raised $1.4 billion in leveraged financing to acquire the German steel company Klöeckner & Co., according to Bloomberg.

According to informed sources, Worthington placed $700 million in high-yield bonds and $700 million in leveraged loans as part of deals arranged by Wells Fargo & Co. The initial plan was to issue $900 million in bonds and secure a $500 million loan.

In January of this year, Worthington signed an agreement to acquire Klöeckner for $2.4 billion. According to the American company, the deal is expected to close on June 3.

Upon completion of the deal, Worthington Steel will become the second-largest steel service center operator in North America with combined revenue exceeding $9.5 billion. Through this acquisition, it expects to expand its offerings in the high-value metals processing sector.

At the same time, a spokesperson for the American company reported that all regulatory conditions for the acquisition of the Klöckner service center group have been met, SMU notes.

Worthington Steel specializes in the processing of flat carbon steel and laser welding solutions, and has production facilities in many countries.

As a reminder, Klöckner & Co confirmed that it was in talks with Worthington Steel regarding a potential acquisition last December. At that time, it was noted that the American side was conducting a financial review of the German company’s operations.