SSAB subsidiary Tibnor has completed the acquisition of the steel distribution business of Denmark’s second-largest steel distributor, Sanistål, Kallanish learns from the Swedish steelmaker.
The acquisition was initially announced last November (see Kallanish passim). The move supports SSAB’s strategic target to strengthen its Nordic home market position. The acquired distribution business recorded sales of around SEK 1.9 billion ($204.4 million) in 2018.
“The acquisition of Sanistål’s steel distribution business completes Tibnor’s Nordic footprint by increasing our market presence in Denmark, where we had not been so visible,” Tibnor Mikael Nyquist said in November. “The product offering of Tibnor and Sanistål complement each other well, and we see substantial synergy potential.”
Based on the acquisition, SSAB and Tibnor expect annual synergies of approximately SEK 50m to be realized within three years.