Worthington Steel inks deal to buy Germany's Kloeckner, valued at $2.4B

Worthington Steel said on Friday it will acquire Germany-based metal distributor Kloeckner & Co. The deal would create the second-largest steel service center firm in North America with over $9.5 billion of combined revenue.

The Columbus, Ohio-based service center group said the offer price implies an enterprise value of $2.4 billion. Recall that Worthington first announced the possibility of the deal last month.

Kloeckner, which is based Düsseldorf, Germany, is a service center and metal processing company with ~110 locations across North America and Europe. Its product capabilities include carbon flat-roll steel (sheet and plate), electrical steel, aluminum, stainless steel, and long products.

Roswell, Ga.-headquartered Kloeckner Metals Corp. is its American subsidiary.

The move further diversifies Worthington Steel’s products, end-markets, and geographic footprint across North America and Europe.

“This is a strategic and transformative step in Worthington Steel’s growth journey,” Worthington Steel President and CEO Geoff Gilmore said in a statement on Friday.

“Through the acquisition of Kloeckner & Co., we will enhance our offerings in high-value metals processing and create meaningful value for our shareholders,” he added.

Further terms of deal

Worthington anticipates the buy will be “substantially accretive” to earnings per share within the first full year of operation.

The company has identified ~$150 million in “anticipated annual cost, operational, and commercial process synergies, primarily in North America.”

Worthington expects to fully realize these synergies by the end of its 2028 fiscal year.

“The combination of both companies offers compelling value to all our stakeholders, and we are excited that Kloeckner will be even better positioned to execute our strategic plan, serve our customers, and support the long-term success of our people,” Kloeckner CEO Guido Kerkhoff said.

Nuts and bolts

Worthington Steel GmbH, the subsidiary established for the acquisition, is aiming to launch a voluntary public offer to acquire all outstanding shares of Kloeckner & Co.

The Kloeckner shareholders who want to participate will receive €11 in cash for each Kloeckner share tendered into the offer, according to the statement.

Kloeckner’s largest shareholder, with a stake of ~42%, SWOCTEM GmbH, has signed an “irrevocable agreement” to accept Worthington’s offer.

Completion of the deal is expected in the second half of calendar-year 2026, subject to a minimum acceptance by 65% of Kloeckner’s issued share capital and regulatory approvals.

An offer document will provide further details of the deal in accordance with German securities laws.

Worthington anticipates financing the buy via a combination of cash on hand and new debt financing.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.