German metals producer and distributor Klockner & Co said July 13 that it has acquired two local stainless steel service centers, Hernandez Stainless GmbH and RSC Rostfrei Coilcenter GmbH, for an undisclosed figure as part of its bid to expand to expand its operations in Germany.
The company carried out the purchases through its Becker Stahl-Service subsidiary, one of the largest service centers in Europe in the flat steel sector, with sales of around Eur700 million ($703 million) in fiscal year 2021.
“Both of these acquisitions are of major strategic importance for us,” Klockner CEO Guido Kerkhoff said. “Hernandez Stainless and RSC Rostfrei Coilcenter will strengthen our position as a leading digital one-stop shop platform for steel, stainless steel and aluminum, and as a pioneer in sustainability. Going forward, we will be able to provide our customers with an even more comprehensive and custom-fit product and service portfolio.”
Hernandez provides surface machining and stocks stainless flat products. RSC is specialized in stainless steel coil cutting. Hernandez and RSC operate extensive machine facilities and supply around 400 distributors throughout Europe as well as stainless steel processors in various industries. RSC is also a major supplier to Hernandez.
Klockner has said it is driving forward an expansion of its in-house product and service portfolio. The additions to the portfolio as a result of this latest transaction will enable customers to purchase processed stainless steel through Becker. Becker has also already significantly expanded its service center activities in carbon steel and aluminum.
The newly acquired units, which generated sales of around Eur160 million in fiscal year 2021, are expected to be included in the company’s consolidated financial statements from the beginning of the third quarter of 2022. The transactions remain subject to approval by the competition authorities.
Domestic prices for hot-rolled coil in Northern Europe were stable on July 13 as market activity remained low, with restocking expected by end-July. Platts assessed HRC in Northern Europe at Eur855/mt ex-works Ruhr July 13, stable day on day, according to S&P Global Commodity Insights data.
— Annalisa Villa