The facilities to be sold are located in Austin and Houston (Texas), Charlotte (North Carolina), Dubuque (Iowa), Jacksonville and Pompano Beach (Florida), as well as Suwanee near Atlanta (Georgia). In addition, Klöckner & Co has agreed to sell one U.S. distribution facility of Kloeckner Metals Corporation in Amarillo (Texas) to Service Steel Warehouse.
Klöckner & Co and Russel Metals agreed on a purchase price of approximately USD 119 million based on net working capital as of June 30, 2025. This represents a book gain of more than EUR 20 million. The final purchase price will be subject to closing net working capital and other customary adjustments. As part of the agreement with Russel Metals, the parties also signed a Transition Services Agreement (TSA). The seven facilities to be sold to Russel Metals contributed an average annual EBITDA of around USD 9 million to Klöckner & Co’s audited financial statements in fiscal years 2023 and 2024, before special effects. Klöckner & Co and Service Steel Warehouse mutually agreed not to disclose details regarding the sale of the Amarillo site.
Klöckner & Co CEO Guido Kerkhoff emphasized the strategic importance of the sale with the following statement:
“Our divestments mark decisive milestones in the consistent execution of our strategy. Both are seamlessly aligned with our previous strategic initiatives and portfolio transactions and further sharpen our focus on higher value-added and service center activities. While we continue to position Klöckner & Co for higher profitability and sustainable growth in our attractive markets in North America and Europe, we will also reduce our exposure to cyclical commodity markets.”
In its statement, the company highlighted that both divestments represent important steps in the implementation of the corporate strategy “Klöckner & Co: Leveraging Strengths – Step by Step into 2030.” This strategy foresees a focus on higher value-added and service center activities such as processing and manufacturing solutions within the customer value chain.
Excluding the eight distribution centers, the share of higher value-added and service center activities — characterized by more stable demand and higher profitability — reached 86% (+5 pp) of sales in the first half of 2025. Including the centers, this figure stood at 81%. The transactions were said to further enhance Klöckner & Co’s earnings profile.
Kloeckner Metals Corporation CEO John Ganem commented:
“Throughout the divestment processes, we attached great importance to acting with full responsibility towards our employees and customers in the branches being sold. Given that both buyers are highly successful and reputable companies, Kloeckner is very confident that the employees, customers, and distribution centers will be in reliable hands and that a strong future will be secured for all stakeholders.”
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