October 14, 2008

Klöckner & Co expands in the US by acquiring ScanSteel

Klöckner & Co AG’s US subsidiary Namasco Corporation announced that it has signed an agreement to acquire the steel distribution business of ScanSteel Service Center Inc of Jeffersonville at Indiana in USA. Namasco Corporation said that ScanSteel presents an ideal enhancement to the distributor Action Steel, also from Indiana and acquired last year, strengthening the competitive position of Namacso in the Midwest of the US.

With 17 employees, ScanSteel specializes in the distribution and prefabrication of pipes, flat steel and construction steel. In 2006, it generated approx EUR 7 million in sales. The full product range supplier delivers to a broad range of customers of the construction, plant and machinery manufacturing as well as agricultural sectors.

Dr Thomas Ludwig chairman of the board of management of Klöckner & Co AG said that “The acquisition of ScanSteel makes it clear that we are driving the regional consolidation. Having expanded our distribution network to Indiana through the acquisition of Action Steel, the targeted expansion of our regional presence is achieved by this acquisition of ScanSteel. Altogether, we now have 30 warehouses available in North America.”

Klöckner & Co is the largest independent producer and distributor of steel and metal products in the European and North American markets combined. The core business of the Klöckner & Co Group is the storage and distribution of steel and non ferrous metals.