Klöckner & Co has agreed to the takeover of Industrial Manufacturing Services (IMS) by its US subsidiary Kloeckner Metals Corporation (KMC). The transaction represents a further milestone in the implementation of the corporate strategy “Klöckner & Co 2025: Leveraging Strengths”, within which the company is constantly developing its product and service portfolio along the value chain towards customers.
As part of this strategy, Klöckner & Co plans to expand its processing portfolio in order to benefit from the highly profitable processing business and significantly greater independence from steel price developments. The takeover of IMS contributes to this strategy in every respect. The contracting parties have agreed to maintain secrecy about the purchase price and other details. The companies will be consolidated from the beginning of November 2023.
Guido Kerkhoff, CEO of Klöckner & Co SE: “The takeover of IMS is the second significant takeover within a few months, which will advance the expansion of our product and service portfolio in accordance with our corporate strategy ‘Klöckner & Co 2025: Leveraging Strengths’. We intend to become the best vertically integrated provider to OEMs in North America.”
The company, based in Lancaster, South Carolina, serves heavy equipment OEMs with the manufacturing, welding, assembly and just-in-time warehousing of light to medium-sized subassemblies. KMC wants to use this growth opportunity to develop new customers within the market and intensify existing relationships with OEMs. Furthermore, the acquisition will enable KMC to incorporate IMS’ extensive know-how in welding and precast production into its existing service portfolio and also use it in other KMC locations throughout North America. In this way, KMC will consolidate its leading position in the market and differentiate its offering even more clearly from the competition.
John Ganem, CEO of Kloeckner Metals Corporation: “Today we reach another milestone in our journey to transform KMC. We will significantly expand our metal processing business along our customers’ value chains. Additionally, IMS will add unparalleled expertise in welding and parts manufacturing to our unique product portfolio.”
(Source: Klöckner & Co)