After a successful due diligence process and having obtained the required antitrust approvals, Klöckner & Co completes the acquisition of Macsteel Service Centers USA Inc.
MSC USA is a leading US steel service center focused on flat products. In the 2011 fiscal year, the company anticipates sales of approximately USD 1.8 billion.
With this acquisition, Klöckner & Co doubles its sales and branch outlets in North America. It will become one of the top three US steel and metal distributors. The product portfolio, which thus far has concentrated on long products and plate, will now be extended to include a substantial share in flat rolled products for both ferrous and
non ferrous.
Klöckner & Co is gratified that this acquisition helps it to fulfill all of its Klöckner & Co 2020 strategy criteria. MSCUSA operates in the more stable, more value adding steel service center business. It serves the less volatile and more value added sectors. As with its markets served in Europe, the company has now reached a top 3 position in the USA. At 30% of Group sales, the US American country organization now becomes the largest within the company.
With this addition, in the flat rolled sector, Klöckner & Co expands its industrial segment with a stronger focus on reprocessing services and thus reduces its dependency on the construction industry in the US Along with the German subsidiary Becker Stahl Service the new acquisition provides the potential to break into the US automotive industry, with a focus on European premium manufacturers.
Mr Gisbert Rühl chairman of executive board of Klöckner & Co SE said that "The acquisition of Macsteel USA is an important milestone towards the implementation of our strategy Klöckner & Co 2020 and enables us the first time to fully market our entire steel product portfolio across the length and breadth of North America. Furthermore, our 2015 sales volumes target range of 8 to 10 million tonnes could be reached as early as 2012. We are also excited about innovatively utilizing the increased critical mass and network of facilities to improve earnings."
Source: steelguru.com
×
