Germany’s Klockner & Co has agreed to sell seven U.S. distribution sites of its subsidiary, Kloeckner Metals Corporation, to Russel Metals for about USD 119 mln, based on net working capital as of June 30, 2025.
The sites include Austin and Houston (Texas), Charlotte (North Carolina), Dubuque (Iowa), Jacksonville and Pompano Beach (Florida), and Suwanee near Atlanta (Georgia). The deal, which includes a Transitional Service Agreement, is expected to generate a book profit of over EUR 20 mln (USD 23.4 mln).
In a separate transaction, Klockner & Co will sell its Amarillo, Texas site to Service Steel Warehouse, though financial details were not disclosed.
The divestments mark progress in Klockner & Co’s “Leveraging Strengths – Step Up 2030” strategy, which prioritizes shifting capital from commodity distribution to higher value-added and service center businesses, such as processing and fabrication solutions.
By excluding the eight divested sites, Klockner & Co increased the share of revenue from its higher-value-added businesses to 86pct in H1 2025, up from 81pct, strengthening its earnings stability and reducing exposure to volatile commodity markets.
One of the world’s largest producer-independent steel and metal processors, Klockner operates around 120 warehouse and processing sites, mainly in North America and the DACH region (Germany, Austria and Switzerland), serving over 60,000 customers.
