GERMAN COUNTRY OPERATION OF KLÖCKNER & CO AG EXPANDS IN SOUTHERN GERMANY
- Three acquisitions in Germany
- Strengthening the market position in Southern Germany
After significantly strengthening its position in North America through the purchase of Primary Steel, Klöckner & Co AG is systematically advancing its expansion of the European business. Following successful restructuring, the German Klöckner & Co company, Klöckner Stahl- und Metallhandel GmbH, has concluded contracts for the acquisition of three distribution companies in Southern Germany. These companies are the Edelstahlservice Verkaufsgesellschaft mbH in Frankfurt am Main as well as the steel distribution of Max Carl GmbH & Co KG in Coburg and the steel distribution of Zweygart Fachhandelsgruppe GmbH & Co KG in Stuttgart.
Edelstahlservice Verkaufsgesellschaft mbH, with headquarters in Frankfurt am Main and a subsidiary in Hungary, is specialized in steel processing and stainless steel trade for the chemical industry. Together with its subsidiary Edelstahlservice Mágocs Nemesacélfeldolgozó Kft,Hungary, the company employs 49 persons and generated sales of €16.7 million in 2006.
Max Carl Stahlhandel registered in Coburg achieved sales of €15.0 million in 2006 with 19 employees. The distribution company – a former division of Max Carl GmbH & Co KG - offers a full range of steel and metal products.
Zweygart Stahlhandel, registered in Ehningen, southwest of Stuttgart, is also a distributor of steel and metals and has a diversified customer topology in Baden-Württemberg. The company – a former division of Zweygart Fachhandelsgruppe GmbH & Co KG – employs 22 persons and generated sales of €11.3 million in the 2005/2006 fiscal year.
“These companies perfectly strengthen our market position in Southern Germany, and through the location in Hungary, we have also expanded our business activity in Eastern Europe. We have thus already purchased six companies in the first five months of the year and have made significant progress in achieving our target of taking over 10 to 12 distributors in the 2007 fiscal year”, explains Dr. Thomas Ludwig, CEO of Klöckner & Co AG.
The German Klöckner & Co subsidiary, Klöckner Stahl- und Metallhandel GmbH (KSM), is headquartered in Duisburg. KSM currently employs around 1,600 persons and has 19 locations in Germany.
