Kloeckner Metals Corporation, Roswell, Ga., will acquire Industrial Manufacturing Services. KMC is a subsidiary of Klöckner & Co.
The transaction marks a further milestone in the implementation of Klöckner & Co's corporate strategy "Klöckner & Co 2025: Leveraging Strengths" whereby the company is consistently expanding its product and service portfolio along the value chain toward customers. As part of this strategy, Klöckner intends to expand its fabrication portfolio to benefit from the highly profitable fabrication business, thus being significantly less dependent on steel price developments.
The acquisition of IMS fully contributes to this strategy. The parties agreed not to disclose the purchase price or further details. The consolidation of the business will take place starting this month.
"The acquisition of IMS is the second significant transaction in just a few months which will accelerate the expansion of our product and service portfolio in line with our corporate strategy. We intend to become the best vertically integrated supplier for OEMs in North America," said Guido Kerkhoff, CEO of Klöckner & Co SE.
Headquartered in Lancaster, S.C., IMS provides fabrication, welding, assembly as well as just-in-time warehousing of light to medium size sub-assemblies to OEMs of the heavy machinery industry. KMC intends to build on this growth opportunity, attract new customers within the market and further develop existing relationships with OEMs.
Moreover, the acquisition enables KMC to add IMS's strong expertise in welding and finished parts manufacturing to its existing service portfolio and to implement it at other KMC facilities throughout North America. As a result, KMC will significantly strengthen its leading position within the market and further differentiate its offering from competitors, the company claimed.
“We are taking another milestone in transforming KMC. We will significantly expand our metal fabrication business along our customers' value chains. In addition, IMS will add unrivaled expertise in welding and finished parts manufacturing to our unique product portfolio," said John Ganem, CEO of Kloeckner Metals Corporation: