Namasco, the U.S. subsidiary of Germany’s Klöckner & Co SE, and Macsteel Service Centers USA, the U.S. subsidiary of Amsterdam’s Macsteel Global B.V., are merging under an agreement expected to be final early in the second quarter.
“This acquisition would be an excellent strategic combination that will provide a platform for our future growth in North America. With the acquisition of Macsteel Service Centers USA, we would more than double our sales in the U.S. and expand our geographical coverage and our product portfolio significantly. With that, we would expect to become one of the top three in the U.S. steel distribution and service center industry with a meaningful spread of carbon steel products,” says Gisbert Ruehl, Klöckner chairman.
Macsteel and Namasco were tied at No. 8 in last year’s Metal Center News Top 50 Service Centers ranking with approximately $1.2 billion in annual sales.
Eric Samson, founder and co-chairman of Macsteel Global B.V., will remain as the non-executive co-chairman of Macsteel USA and join the board of Klöckner USA Holdings in a non-executive capacity.
“The Macsteel Group has been evaluating various opportunities over the past three years, mostly in the U.S., and in the course of this activity we were approached by Klöckner & Co. of Germany. It became clear that there are substantial benefits to be had in combining the activities of [Macsteel and Namasco],” Samson says. “This is of course a big step for us, but we are convinced that it will be for the substantial benefits of all our stakeholders, be they employees, management, customers, suppliers or shareholders. The prospects are tremendous.”
Michael Hoffman will remain the president and CEO of Macsteel USA. He will also join Klöckner USA’s board in an executive capacity and will become the CEO of the combined business. Bill Partalis will continue in his capacity as CEO of Namasco Inc. and will become president of the combined business.
Macsteel Service Centers USA, headquartered in Newport Beach, Calif., has a network of 30 locations, which includes the former Edgcomb Metals, Regal Steel Co., Baldwin Steel, Ferro Union, Hokin Katz and Alpha Steel. The company processes and distributes a full range of flat-rolled, plate, tubing, pipe, bar and structurals in carbon, stainless, aluminum and specialty metals to customers throughout North America, Hawaii and Puerto Rico. It also supplies a full range of steel building products, as well as coated and prepainted metals.
Klöckner & Co. claims to be the largest producer-independent distributor of steel and nonferrous metal products in the European and North American markets combined, with about 250 locations in 15 countries.