Steel Mills
Worthington Industries to Acquire Tempel Steel
Written by David Schollaert
September 29, 2021
Worthington Industries Inc. has agreed to buy Tempel Steel Company, a manufacturer of precision motor and transformer laminations for the electrical steel market, for roughly $255 million.
The move by the Columbus-based steel processor will boost its position in the growing electric vehicle (EV) landscape, the company said. Tempel Steel, headquartered in Chicago and founded 1945, operates five plants around the world and specializes in electrical steel – highly engineered steel used for the core of electric motors, transformers and generators.
“Acquiring Tempel will immediately make us a market leader in the rapidly growing electrical steel market that includes transformers, machine motors and EV motors,” said Andy Rose, Worthington’s president and CEO. “Worthington’s experience and deep relationships in the automotive sector will position Tempel to further penetrate the growing hybrid and EV market.”
With hybrids and EVs expected to continue growing at double-digit rates worldwide, Tempel will significantly enhance Worthington’s existing automotive offerings, including its lightweighting technology and laser welded solutions, the company said.
Tempel also serves the important electricity infrastructure and distribution markets. These markets, according to Worthington, will see significant investment and growth to support the transition to electric motors across multiple industries.
“As EVs are embraced globally and the electricity infrastructure is upgraded and expanded to accommodate the shift to electric motors, we’re excited about what our organizations can do together on a global scale,” said Rose.
Tempel reported sales of $377 million and earnings of $35 million for the 12 months ending Sept. 30. For its most recent fiscal year, Worthington Industries reported sales of $3.2 billion. The deal is anticipated to close in December.
This is Worthington’s second acquisition in the past six months. In June, the company acquired parts of Shiloh Industries’ BlankLight business for $105 million. A steel processor and producer of laser-welded products, Worthington operates 53 facilities in 15 states and seven countries and employs approximately 8,000 people. It is also a global supplier of pressure cylinders and accessories for applications such as fuel storage and water systems.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
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