US EditionWorthington Steel to Buy Germany's Kloeckner & Co in $2.4 Billion Deal; Shares Surge
The $2.4 billion deal aims to create North America’s second-largest steel service center with $150 million in annual synergies and an earnings-per-share boost post-closing.
- On Thursday, Worthington Steel disclosed an agreement to acquire Kloeckner & Co via a voluntary offer at €11 per share, implying a $2.4 billion enterprise value.
- By combining operations, Worthington aims to create North America’s second-largest steel service center with combined revenues over $9.5 billion, broadening product range and geographic presence, Worthington said.
- On funding and balance sheet, Worthington plans to use cash on hand and new debt, with pro forma net leverage expected around 4.0x, and SWOCTEM committed to tender at least 65%.
- Investors reacted, with Worthington shares up 1.29% at $39.25 during premarket trading on Friday, hitting a 52-week high, as management expects near-term EPS accretion.
- Post-Close priorities include deleveraging to net leverage below 2.5x within 24 months of closing and realizing commercial synergies mainly in North America by fiscal year 2028.
18 Articles
18 Articles
Worthington Steel takes over the German metal processor Klöckner & Co. It is just an example of the unprecedented consolidation in which the industry is currently located. Which shares can benefit from it? And which remain eternal children of concern?
The US company Worthington Steel offers over two billion euros for the Duisburg steel dealer Klöckner & Co. Investors are thrilled that Klöckner's share is shooting upwards.
The steel dealer Klöckner & Co. is 120 years old. Now Americans take over the S-Dax member with a good 6000 employees – and they pay a luxuriant premium.
Worthington Steel and the German steel and metal processor Klöckner have been negotiating a takeover offer since the end of last year. Several billions could flow in time.
Worthington Steel Smashes 52-Week High On Kloeckner Deal - Worthington Steel (NYSE:WS)
On Thursday, Worthington Steel, Inc. (NYSE:WS) disclosed an agreement to acquire Kloeckner & Co. The company plans a voluntary public offer to acquire all outstanding shares of Kloeckner & Co at 11 euros per share ($12.8), with management support and the existing leadership expected to remain post-closing. SWOCTEM GmbH, Kloeckner’s largest shareholder with 42%, has committed to tender its shares. The offer requires at least 65% shareholder accep…
The US company Worthington Steel is facing the acquisition of Klöckner & Co. Klöckner shareholders will be offered EUR 11 per share.
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