Klöckner & Co to Divest Eight U.S. Sites, Focus on Higher Value Business

Klöckner & Co, a major independent metal processor, plans to sell eight U.S. distribution sites, aiming to strengthen its focus on higher value-added and service center business. This strategic move is part of their "Klöckner & Co: Leveraging Strengths – Step Up 2030" strategy.

Seven sites will be sold to Russel Metals while one site will be transferred to Service Steel Warehouse. The agreed purchase price with Russel Metals is approximately USD119 million, with a significant book profit for Klöckner & Co.

These divestments are intended to enhance Klöckner & Co’s earnings profile by increasing the contribution from more stable and profitable business areas to 86%. The company aims to reduce exposure to cyclical commodity markets and continue its growth in North America and Europe. CEO Guido Kerkhoff highlighted this as a critical step towards sustainable growth.