Worthington Steel’s acquisition of German metals company Kloeckner & Co is “progressing well” and is expected to complete in the second half of 2026, chief executive officer, president and director Geoffrey Gilmore of the US-based steel processor said on Thursday March 26.
The voluntary public takeover offer had been at least two years in the making, Gilmore told Fastmarkets in an exclusive interview on January 16.
The merger would create the second-largest steel service center company in North America with more than $9.5 billion of combined revenue.
Although Kloeckner & Co is a German company, about 75% of its shipments are in North America, making it an attractive acquisition target, Gilmore said in January.
The transaction remains subject to the tender process and required regulatory approvals, Gilmore said, adding that he expects the deal to be completed in the second half of the year.
“We have submitted requests for regulatory approval in the required jurisdictions, and we are beginning to see approvals come through. Overall, the process is progressing well,” the CEO told investors on the company’s third-quarter earnings call on Thursday, adding that the company has received “overwhelmingly positive” response from customers, suppliers and investors.
The German public company takeover process is “highly structured,” Gilmore shared on Thursday.
Kloeckner & Co, with approximately 110 locations across North America and Europe and product capabilities including carbon flat-roll steel (sheet and plate), electrical steel, aluminium, stainless steel and long products, was an attractive M&A target because it is a “highly complementary business” with “adjacent markets” to Worthington Steel’s operations, Gilmore told Fastmarkets.
Together, the combined company will have about 12,000 employees, Gilmore said.
