Klöckner & Co intends to sell several parts of its European materials distribution business, Kallanish learns from the German-based group.

It says it has received an irrevocable offer from Spanish group Hierros Añonon to acquire the country organisations in France, the UK, the Netherlands and Belgium.

These organisations employ around 1,500 people. In the first nine months of 2023, the businesses collectively contributed €621 million ($685) in revenue, representing about 10% of Klöckner’s total sales volume. In the same reporting period, Ebitda before material special effects was negative €19m, and total assets around €552m.

Going forward, Klöckner says it will continue to concentrate on the growth of its biggest market in North America and its attractive European activities in Germany, Austria, and Switzerland, known as the DACH region.

With the proposed transaction, Klöckner would continue to prioritise businesses with higher value-added products and services along the value chain of its customers like processing and fabrication services, the company notes. These offers have higher profitability and more stable demand due to the long-term contractual relationships and strong customisation associated with the higher value-added business.

Closing, after acceptance of the irrevocable offer, is expected to take place in the first half of 2024.