Klöckner & Co. Sells Eight US Distribution Sites to Russel Metals for Service Steel Warehouse Acquisition.

Klöckner & Co. is selling eight US distribution sites to Russel Metals and Service Steel Warehouse. The deal is expected to strengthen Russel Metals' presence in the US market. Klöckner & Co. aims to focus on its core businesses, including steel trading and distribution in Europe.

German steel service center Klöckner & Co. has agreed to sell eight of its US distribution sites to Russel Metals and Service Steel Warehouse. The deal, which includes seven sites to Russel Metals and one to Service Steel Warehouse, is part of Klöckner & Co.'s broader strategy to focus on higher value markets. The transaction is expected to strengthen Russel Metals' presence in the US market Klöckner to sell seven US locations to Russel, one to Service Steel Warehouse^[1].

The agreed purchase price for the seven sites sold to Russel Metals is approximately USD119 million, which includes USD67 million in working capital and USD52 million in property, plants, and equipment (PP&E). The sites to be sold are located in Dubuque, Iowa; Charlotte, N.C.; Suwanee, Ga. (near Atlanta); Houston; Austin, Texas; Jacksonville, Fla.; and Pompano Beach, Fla. The deal with Service Steel Warehouse for the Amarillo, Texas site is not disclosed Klöckner to sell seven US locations to Russel, one to Service Steel Warehouse^[1].

Russel Metals President and CEO John Reid stated that the acquisition aligns with the company's long-term strategy of growing in the US. He expects the acquisition to provide operating benefits through enhanced inventory management, procurement, and facility modernizations over the next 2-3 years Klöckner to sell seven US locations to Russel, one to Service Steel Warehouse^[1].

Klöckner & Co. CEO Guido Kerkhoff emphasized that the divestments are part of their strategy to reduce exposure to cyclical commodity markets and focus on higher profitability and sustainable growth in North America and Europe. Excluding the sold sites, Klöckner & Co. generated 86% of its sales from higher-value-added and service center businesses, up from 81% in the first half of 2025 Klöckner & Co to sell eight U.S. distribution sites to intensify ...^[2].

Both deals remain subject to closing and other conditions. Klöckner & Co. expects the transactions to result in a book profit of over €20 million Klöckner & Co to sell eight U.S. distribution sites to intensify ...^[2].