Worthington Steel to Acquire Kloeckner & Co
Steel News | 2026-01-16 00:04:11
Furthermore, the acquisition is expected to be substantially accretive to Worthington Steel’s earnings per share within the first full year of operation.
By Paul Ploumis
SEATTLE (Scrap Monster): Worthington Steel (NYSE: WS), today announced that it has entered into a Business Combination Agreement with Kloeckner & Co.
Listed in Germany (XETR: KCO), Kloeckner & Co is a leading service center and metal processing company with approximately 110 locations across North America and Europe. It has broad product capabilities including carbon flat-roll steel (sheet and plate), electrical steel, aluminum, stainless steel and long products. Over the past few years, Kloeckner has been transitioning toward high value-added processing and fabrication via M&A and strategic growth initiatives.
The proposed acquisition represents a strong strategic fit and advances Worthington Steel's growth strategy by strengthening its position in the North American metal processing sector.
It will create a larger and more diversified metals processing leader with an enhanced product offering and broader geographic reach. Once completed, the transaction will position Worthington Steel as the second largest steel service center company in North America by revenue.
The transaction broadens Worthington Steel’s product portfolio, end market exposure and geographic footprint. The combined company will benefit from greater scale, shared best practices and operational efficiency. Together, Worthington Steel and Kloeckner & Co will build upon their shared focus on safety, quality and operational excellence.
Worthington Steel has identified approximately $150 million in anticipated annual cost, operational, and commercial process synergies primarily in North America. Synergies are expected to be fully realized by the end of Worthington Steel’s fiscal year 2028.
The transaction is expected to triple Worthington Steel's scale in terms of sales representing approximately $9.5 billion of combined revenue while maintaining margins above 7%, including synergies.
The offer price implies an enterprise value of $2.4 billion and represents EV / EBITDA multiples1 of approximately 8.5x based on Kloeckner's TTM EBITDA as of September 30, 2025, and 5.5x considering anticipated run-rate synergies of $150 million.
Furthermore, the acquisition is expected to be substantially accretive to Worthington Steel’s earnings per share within the first full year of operation.
Courtesy: www.finance.yahoo.com
