Worthington Steel announced a voluntary public offer to acquire all outstanding shares of Kloeckner & Co. for 11 euros per share, valuing the transaction at approximately $2.4 billion. The offer represents a premium of roughly 98 % to Kloeckner’s recent trading price, underscoring Worthington’s willingness to pay a substantial premium for the complementary capabilities and market presence of its target.
The combined company will generate more than $9.5 billion in annual revenue, bringing together Worthington’s North American operations and Kloeckner’s extensive European network. The product mix will span carbon flat‑rolled steel, electrical steel, aluminum, stainless steel, and long products, while the merged entity will enhance high‑value processing capabilities such as advanced heat treatment, surface finishing, and value‑added fabrication. Geographic expansion will see Worthington’s footprint extend into key European markets where Kloeckner already operates a robust distribution and service network.
Prior to the deal, Worthington reported 2024 revenue of $3.28 billion, a slight decline from $3.38 billion in 2023, while Kloeckner posted 2024 revenue of $7.14 billion, up from $6.86 billion in 2023. The transaction will be financed with a mix of cash on hand and new debt, leaving a pro‑forma net leverage ratio of about 4.0x at closing. Worthington’s management has set a target to reduce leverage to below 2.5x within 24 months, a key risk factor that will be monitored closely as the integration progresses.
Jeff Gilmore, president and CEO of Worthington Steel, said the acquisition “is a strategic and transformational step in our growth journey. By combining our high‑value metals processing capabilities with Klöckner’s global reach, we will create significant value for shareholders, deepen customer relationships, and unlock new growth opportunities.” Guido Kerkhoff, CEO of Kloeckner & Co., added that the deal “brings complementary capabilities and a respected reputation, and we look forward to leveraging our shared focus on operational excellence and disciplined execution.”
The deal is expected to deliver $150 million in annual run‑rate synergies, primarily through cost savings in procurement, shared manufacturing facilities, and cross‑selling of complementary product lines. Successful realization of these synergies, coupled with a disciplined deleveraging program, will be critical to the long‑term financial health of the combined entity. The transaction also positions the new company to better compete in a market that is increasingly focused on digital transformation, sustainability, and customized value‑added services, thereby strengthening its competitive moat in North America and Europe.
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