German metal processor Kloeckner to be acquired by U.S. peer Worthington; shares jump

Shares of Kloeckner & Co, one of Europe’s largest metal traders, surged in German trading on Friday, January 16, jumping 27.3% to their highest level since May 2022. The rally followed the news that U.S.-based Worthington Steel will acquire the company at a premium to the market price. The transaction looks set to reshape the North American metalworking market and position Worthington Steel as the second-largest company in the region by revenue, Noble Capital Markets argues.

Kloeckner shares climbed 27.3% on Friday to EUR11 apiece on the Frankfurt Stock Exchange, marking their highest level since May 2022. At the opening of trading on Monday, the share price was little changed.

The rally came after Worthington Steel announced it would acquire the German company. To carry out the transaction, the U.S. group has established a wholly owned subsidiary in Germany, which intends to purchase Kloeckner shares through a voluntary public tender offer.

The offer values Kloeckner shares at EUR11 per share, implying an enterprise value of about $2.4 billion, according to the announcement. SWOCTEM, an investment fund owned by billionaire Friedhelm Loh and holding about 42% of Kloeckner’s shares, has agreed to tender its stake, the press release said. The transaction is expected to close in the second half of 2026, subject to regulatory approvals.

Worthington Steel investors also reacted positively to the announcement. The company’s shares rose 3.4% to $40.00 per share on Friday on the New York Stock Exchange before extending the gains after the close that day. Worthington Steel’s market capitalization now exceeds $2 billion. The stock currently has two Wall Street analyst ratings – one “buy” and one “hold” – MarketWatch data shows. The average target price of $41.00 per share implies about 2.5% upside versus current levels.

The proposed transaction would significantly alter the North American metal processing market in the U.S. and Canada and make Worthington Steel the second-largest steel service center company in the region by revenue, Noble wrote.

"The transaction is expected to triple Worthington Steel's scale in terms of sales representing approximately $9.5 billion of combined revenue while maintaining margins above 7%, including synergies," the company said. Note that Worthington Steel reported a 5% decline in revenue to $3.8 billion in fiscal 2025 (ended May 31).

Worthington Steel estimates annual synergies from the combination with Kloeckner at $150 million. These savings are expected to be fully realized by the end of fiscal 2028.

Noble also pointed to the expansion of Worthington Steel’s global footprint as a key benefit of the transaction. Kloeckner operates about 110 service centers and processing facilities across North America and Europe and, in recent years, has increasingly focused on high value-added processing and manufacturing. This strategic direction aligns closely with Worthington Steel’s priorities, Noble believes, and should support the company’s long-term growth.