Kloeckner Completes NMM Acquisition
By
Metal Center News Staff on
Aug 1, 2023
Klöckner & Co has completed an acquisition of National Material of Mexico, a leading independent service center and materials supplier serving automotive and industrial end markets in North America. NMM operates 10 facilities throughout Mexico.
The transaction was signed in December 2022 and was made through Klöckner & Co’s U.S. subsidiary, Kloeckner Metals Corp. The acquisition of NMM enables KMC to significantly expand its footprint in Mexico and increase its presence where the key automotive and industrial customers are located.
The high complementarity of regional presence, customer segments and NMM’s major footprint within the automotive sector make the transaction a perfect fit for both companies, company executives said. “The closing of this transaction marks an important milestone on our way to implementing our corporate strategy 'Klöckner & Co 2025: Leveraging Strengths," said Guido Kerkhoff, CEO of Klöckner & Co SE. "As a result, we will further strengthen our position as a leading distributor for steel and metal products and as a steel service company in North America in the long term. From now on, our customers will benefit from an even larger product and service portfolio.”
“With National Material of Mexico we have found the ideal complement for the future progress of Kloeckner Metals Corporation. We look forward to working with the strong team at National Material of Mexico and are convinced that we will continue our success story in the North American market as a combined company," said John Ganem, CEO of KMC.
The combined company has a broad presence in all relevant regions in the U.S. and Mexico with 56 sites and around 2,600 employees. The company aims to expand its market presence, broaden the product offering and further develop existing relationships through cross-selling.
In addition, KMC’s customers will have better access to electrical steel to support the growing investment into renewable energy and the rising demand for e-mobility in North America.
The management team of NMM with Carl Grobien and Steve Badyna will remain with the company and continue to drive the future growth.