Worthington Steel to Acquire Kloeckner & Co in Strategic Move

Worthington Steel has announced plans to acquire German company Kloeckner & Co, creating the second largest steel service center in North America with $9.5 billion in combined revenue. The acquisition aims to strengthen Worthington's position in the North American metal processing sector and diversify its product offerings and geographic footprint across North America and Europe.

The deal is expected to generate $150 million in annual synergies and enhance earnings per share within the first year. The acquisition will be all-cash, supported by Kloeckner's major shareholder SWOCTEM GmbH. Completion is targeted for late 2026, pending regulatory approvals and a successful tender offer.

Financing the acquisition will involve a mix of cash on hand and new debt, with a focus on reducing net leverage in the two years post-closing. The transaction signifies a transformative step in Worthington's growth strategy, aiming to build a more resilient business and drive shareholder value.