Steel distributor Klöckner & Co SE has revealed that it is in negotiations with US company Worthington Steel regarding a voluntary public takeover offer for Klöckner.
In an as-hoc announcement on the weekend, German-based Klöckner said it confirms rumours to that effect. Worthington Steel has made progress to the point that it is in the phase of conducting a due diligence review, Klöckner states.
In a subsequent statement of its own, Worthington Steel confirms the negotiations, noting that no investment decision has been made. The Columbus, Ohio-based processor says the discussions may not necessarily result in a transaction, and that it would not comment further.
The news is surprising as Klöckner over the years has carried out numerous acquisitions and spin-offs, but has never been an object for a takeover itself. Klöckner is Germany’s only stock-market listed steel distributor, with annual revenue of more than €6 billion ($7 billion), achieved with activities in Germany, Switzerland and the US. The tonnage it handles has become slimmer over the years, from some 6 million tonnes/year before 2020, and less than 5m t/y nowadays.
This may be partly caused by economic fluctuation, but is largely a consequence of the group’s efforts to move from pure tonnage and commodities into processing and value-added services. It has made various investment, divestments, and acquisitions to that effect in the recent years especially in the US (see Kallanish passim).
This of course fits fine with Worthington’s activities in carbon flat-roll steel processing, electrical steel laminations and tailor welded solutions. The company has approximately 6,000 employees, and highlights its value-added processing capabilities including galvanizing, pickling, configured blanking, specialty cold reduction, lightweighting and electrical lamination. Worthington Steel operates 37 facilities in seven states and ten countries.
