Acquisition of Worthington Steel by German steel company Kloeckner & The Co is "progressing well" and is expected to be completed in the second half of 2026, Jeffrey Gilmore, Chief executive Officer, president and director of U.
S. steel Production, said on Thursday, March 26.
The voluntary public takeover offer has been in preparation for at least two years, Gilmore said in an exclusive interview with Fastmarkets on January 16.
The merger will create the second largest metalwork maintenance company in North America with combined revenue of over $9.5 billion.
Although Kloeckner & Co is a German company, with about 75% of its shipments in North America, making it an attractive acquisition target, Gilmore said in January.
The deal is still subject to a tender process and requires regulatory approval, 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 starting to see them getting approval. Overall, the process is progressing well," the CEO told investors during the company's third-quarter earnings report on Thursday, adding that the company had received "exceptionally positive" feedback from customers, suppliers and investors.
The takeover process of a German public company is "very structured," Gilmore said on Thursday.
The Kloeckner Company & With about 110 branches across North America and Europe and a manufacturing base including carbon steel sheets, electrical steel, aluminum, stainless steel, and rolled products, Co was an attractive target for mergers and acquisitions because it is a "highly complementary business." Gilmore told Fastmarkets about "related markets" with the activities of Worthington Steel.
According to Gilmore, the combined company will employ about 12,000 employees in total.
Author: Alyosha Alkaff
Fastmarkets.com
