Worthington Steel to Close Kloeckner Deal by January 2027
The metals processor said it is combining with Kloeckner to realize opportunities ahead in the metals-processing business.
Worthington Steel, Inc. (WS) said it expects to complete its combination with Kloeckner & Co SE at the earliest on January 1, 2027, after clearing the remaining steps in a process that began with a January 2026 business-combination agreement.
The metals processor is combining with Kloeckner to realize the opportunities ahead in the metals-processing business.
“[W]e are pleased to have reached another important milestone in bringing Worthington Steel and Kloeckner together,” said Geoff Gilmore, president and CEO of Worthington Steel. “We continue to make good progress through the planned steps in the process.”
The deal was originally structured as an all-cash voluntary tender offer in Germany at €11.00 a share, a 98% premium to Kloeckner’s undisturbed three-month volume-weighted average share price as of December 5, 2025. The combination would create the second-largest steel service-center company in North America by revenue, with more than $9.5 billion of combined revenue, and would generate an estimated $150 million of identified annual run-rate synergies.
The initial acceptance period closed on March 26, 2026, after Worthington Steel lowered the minimum acceptance threshold to 57.5%. It then secured about 58.8% of Kloeckner’s issued share capital, including shares acquired by Worthington Steel GmbH. Settlement of the takeover offer followed on June 3, 2026, leaving Worthington Steel with approximately 62% of Kloeckner’s outstanding shares.
Worthington Steel intends to enter a domination and profit-and-loss transfer agreement with Kloeckner immediately after completion of the offer and is confident it will secure the required majority at the general meeting. Worthington Steel also launched a public delisting tender offer for remaining Kloeckner shares at €11.00 a share, with an acceptance period that ran from July 15, 2026, to August 12, 2026.
Kloeckner, listed in Germany, operates about 110 locations across North America and Europe and processes carbon flat-roll steel, electrical steel, aluminum, stainless steel and long products. Worthington Steel, headquartered in Columbus, Ohio, operates 37 facilities in seven states and 10 countries.
The combined company is expected to broaden its product mix, diversify end-market exposure and strengthen its geographic footprint, with scale, operational efficiencies and shared best practices as longer-term benefits. The transaction is expected to be substantially accretive to earnings per share within the first full year of operation.
Closing remains subject to the remaining regulatory and customary conditions.