(RTTNews) - Klockner & Co (KCO), a German steel and metal distributing company, said it plans to sell parts of its European commodity distribution business. The company has received an offer by the Spanish Hierros Anon S.A. that comprises all relevant terms and conditions regarding an acquisition 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 around 1,500 people as of September 30, 2023.
The proposed transaction is expected to have a considerably positive impact on the Group EBITDA before material special effects from the financial year 2024 onwards. In addition, the company expects a one-time negative effect on the Group equity of around 210 million euros based on the current equity of the organizations and further deconsolidation effects. However, the equity ratio of the remaining Group is expected to increase to approximately 51%.
Closing, after an acceptance of the offer, is expected to take place in the first half of 2024.
Klockner & Co noted that it would continue to prioritize businesses with higher value-added products and services along the value chain of its customers like processing and fabrication services.
The company stated that 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 (DACH).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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