Kloeckner & Co, which operates around 110 locations across North America and Europe, is among the leading metal processing and service center companies, offering a broad product range from carbon flat steel and stainless steel to aluminum and long products. In recent years, the company has been pursuing strategic growth initiatives in high value-added processing and manufacturing.
The proposed acquisition will strengthen Worthington Steel’s position in the North American metals processing sector and provide significant momentum to the company’s growth strategy. Upon completion, the combined group will have a broader product portfolio and geographic footprint, and Worthington Steel is expected to become the second-largest steel service center company in North America by revenue.
Following the combination with Kloeckner & Co, Worthington Steel will expand its product offering, end-market reach, and geographic presence. The combined company is expected to benefit from greater economies of scale, improved operational efficiency, and shared best practices. Both companies aim to further strengthen their focus on safety, quality, and operational excellence.
Worthington Steel President and CEO Geoff Gilmore described the deal as a “strategic and transformational step in the company’s growth journey,” adding that the acquisition will enhance high-value metal processing capabilities, deepen relationships with customers and suppliers, and create new opportunities for employees. Gilmore said both companies share a common vision for operational excellence and innovation, and that the combination will result in a more resilient and stronger business.
Kloeckner & Co CEO Guido Kerkhoff said the transaction is the right step to build on the company’s strengths and prepare it for the future. Kerkhoff stated that, combined with Worthington Steel’s complementary capabilities, strong reputation, and experienced leadership team, the deal will create compelling value for all stakeholders.
Synergies and Financial Expectations
Worthington Steel said it expects to achieve approximately USD 150 million per year in cost, operational, and commercial synergies from the combination, which are targeted to be fully realised by the end of fiscal year 2028.
Following completion of the transaction, Worthington Steel’s sales volume is expected to triple to approximately USD 9.5 billion in revenue, while maintaining EBITDA margins above 7%.
The transaction implies an enterprise value of approximately USD 2.4 billion for Kloeckner & Co, representing an 8.5x EV/EBITDA multiple based on trailing twelve-month EBITDA as of 30 September 2025, and 5.5x EV/EBITDA including synergies. The deal is expected to be accretive to Worthington Steel’s earnings per share from the first year after closing.
Offer Process and Shareholding Structure
Worthington Steel will launch a voluntary public tender offer for all outstanding shares of Kloeckner & Co through its wholly owned subsidiary, Worthington Steel GmbH. Shareholders who tender their shares will receive EUR 11 in cash per Kloeckner share.
Kloeckner’s Management Board and Supervisory Board intend to recommend acceptance of the offer to shareholders after reviewing the offer documents. Senior management and executives are expected to remain in their roles following completion of the transaction.
SWOCTEM GmbH, Kloeckner’s largest shareholder with approximately 42% of the shares, has entered into an irrevocable agreement with Worthington Steel to tender its stake into the offer.
Completion of the offer is subject to acceptance by at least 65% of Kloeckner’s share capital and receipt of the required regulatory approvals. The transaction is expected to close in the second half of 2026. Further details of the voluntary public tender offer will be announced in the offer document to be published.
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