Home / Business and Economy / Worthington Steel Buys Kloeckner for $2.4B
Worthington Steel Buys Kloeckner for $2.4B
16 Jan
Summary
- Worthington Steel is acquiring Kloeckner & Co for $2.4 billion.
- The deal aims to bolster Worthington's North American metal processing presence.
- The acquisition is expected to create a combined revenue of $9.5 billion.
Worthington Steel has announced plans to acquire Kloeckner & Co for $2.4 billion, a move designed to significantly enhance its footprint in the North American metal processing market. This all-cash transaction is being executed through a voluntary tender offer in Germany.
The acquisition is projected to result in a combined annual revenue of about $9.5 billion. Upon completion, Worthington Steel expects to become the second-largest steel service center company across North America, demonstrating a substantial expansion of its market share.
This deal follows Kloeckner & Co's prior confirmation in December of ongoing takeover discussions with Worthington Steel. The acquisition is anticipated to be finalized in the second half of the year, marking a pivotal moment for both companies in the evolving steel industry.
