Worthington Steel said on Thursday that it would buy Kloeckner & Co in a deal valued at $2.4 billion, as it looks to strengthen its position in the North American metal processing sector.
Kloeckner & Co, which operates out of over 100 sites across North America and Europe, offers carbon flat-roll steel, electrical steel, aluminum among other products.
The all-cash deal will be carried out via a voluntary tender offer in Germany and is expected to close in the second half of the year, Worthington said.
It expects combined revenue of about $9.5 billion following the acquisition, making it the second-largest steel service center company in North America.
Kloeckner said in December that it was in talks, with Worthington Steel regarding a potential takeover.
Shares of Worthington rose over 3% in extended trading.
Source: Reuters.com