Worthington Steel shares surge 16.05% premarket after announcing acquisition of Kloeckner & Co to create second-largest North American steel service center.

Worthington Steel surged 16.05% in premarket trading following the announcement of its $2.4 billion all-cash acquisition of Kloeckner & Co, a German metal processing company. The deal, structured as a voluntary tender offer, is expected to create the second-largest steel service center in North America, combining $9.5 billion in annual revenue and generating $150 million in annual synergies by 2028. The transaction is projected to be substantially accretive to earnings per share within the first full year and significantly diversify Worthington’s geographic and product footprint. Management emphasized strategic alignment with Kloeckner’s operational strengths in North America and Europe, while SWOCTEM GmbH, Kloeckner’s largest shareholder, committed to tendering its 42% stake. The acquisition underscores Worthington’s growth strategy and operational scale, aligning with the stock’s sharp premarket rise.