(RTTNews) – Klockner & Co (KCO), a German steel and metals distribution company, said it plans to sell parts of its European commodities distribution business. The company has received an offer from the Spanish Hierros Anon SA which includes all relevant conditions regarding a takeover of the country organizations in France, the United Kingdom, the Netherlands and Belgium.
The country organizations in France, the United Kingdom, the Netherlands and Belgium employed approximately 1,500 people as of September 30, 2023.
The proposed transaction is expected to have a significant positive impact on the Group’s EBITDA from financial year 2024, before material exceptional effects. In addition, based on the current equity of the organizations and further deconsolidation effects, the company expects a one-off negative effect on group equity of approximately 210 million euros. However, the equity ratio of the remaining Group is expected to increase to approximately 51%.
Closing, following acceptance of the offer, is expected to take place in the first half of 2024.
Klockner & Co noted that it would continue to prioritize companies with higher value-added products and services in its customers’ value chain, such as processing and manufacturing services.
The company said it will continue to focus on growing its largest market in North America and its attractive European operations in Germany, Austria and Switzerland (DACH).
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