Klöckner : Klöckner & Co acquires Hernandez Stainless and RSC Rostfrei Coilcenter

• Transactions strengthen Klöckner & Co's position as leading digital one-stop shop platform and pioneer in sustainability
• Acquisitions enable strategic expansion of stainless steel service center activities
• Expansion of customer base with some 400 new customers across Europe

Duisburg, Germany, July 13, 2022 - Klöckner & Co has acquired the two companies Hernandez Stainless GmbH ("Hernandez") and RSC Rostfrei Coilcenter GmbH ("RSC"). Both acquisitions have been made through Klöckner & Co's German subsidiary, Becker Stahl-Service ("Becker"). The acquisitions mark Becker's entry into stainless steel processing in a significant extension to its product and service portfolio. Hernandez provides surface machining and stocks stainless flat products. RSC is specialized in stainless steel coil cutting. The parties have agreed not to disclose the purchase prices for either company.

Guido Kerkhoff, CEO of Klöckner & Co SE: "Both of these acquisitions are of major strategic importance for us. Hernandez Stainless and RSC Rostfrei Coilcenter will strengthen our position as a leading digital one-stop shop platform for steel, stainless steel and aluminum, and as a pioneer in sustainability. Going forward, we will be able to provide our customers with an even more comprehensive and custom-fit product and service portfolio."

Hernandez and RSC supply around 400 customers across Europe

Hernandez and RSC operate extensive machine facilities and, throughout Europe, supply around 400 distributors as well as stainless steel processors in various industries. RSC is also a major supplier to Hernandez. Together, the two companies have about 70 employees and generated sales of around €160 million in fiscal year 2021. Hernandez is headquartered in Hockenheim and RSC in Süßen (both in the German state of Baden-Württemberg).

Progress in strategy implementation

Under its corporate strategy, "Klöckner & Co 2025: Leveraging Strengths," Klöckner & Co is driving forward a comprehensive expansion of its in-house product and service portfolio. The additions to the portfolio as a result of this latest transaction will enable customers in the future to purchase processed stainless steel through Becker. Becker has also already significantly expanded its service center activities in carbon steel and aluminum.

The two companies are expected to be included in the consolidated financial statements from the beginning of the third quarter of 2022. The transactions remain subject to approval by the competition authorities.