Worthington Steel (WS) to Acquire Kloeckner & Co at €11 per Share

Written by Emily J. Thompson, Senior Investment Analyst

Source: Benzinga

Updated: Jan 16 2026

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WS+4.08%

Should l Buy WS?

Source: Benzinga

Acquisition Agreement: Worthington Steel plans to acquire Kloeckner & Co at €11 per share (approximately $12.8), with a total transaction value of $2.4 billion, targeting completion in the second half of 2026, demonstrating the company's commitment to expansion in the steel industry.
Shareholder Support: Kloeckner's largest shareholder, SWOCTEM GmbH, holding 42% of shares, has committed to support the acquisition, which requires at least 65% shareholder acceptance, ensuring a smoother transaction process.
Synergy Potential: The merger is expected to deliver approximately $150 million in annual run-rate synergies, enhancing Worthington's market position in North America and Europe, with a significant boost to earnings per share anticipated in the first full year post-closing.
Financial Strategy: Worthington Steel will finance the acquisition using cash on hand and new debt, with pro forma net leverage expected to be around 4.0x, aiming to reduce it below 2.5x within 24 months, reflecting the company's focus on financial stability.

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Analyst Views on WS

Wall Street analysts forecast WS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WS is 39.00 USD with a low forecast of 39.00 USD and a high forecast of 39.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Analyst Rating

1 Buy

1 Hold

0 Sell

Moderate Buy

Current: 45.830

Low

39.00

Averages

39.00

High

39.00

Current: 45.830

Low

39.00

Averages

39.00

High

39.00

KeyBanc

Overweight

maintain

$41 -> $47

2026-01-23

Reason

KeyBanc

Price Target

$41 -> $47

AI Analysis

2026-01-23

maintain

Overweight

Reason

KeyBanc raised the firm's price target on Worthington Steel to $47 from $41 and keeps an Overweight rating on the shares. Post Worthington's announcement that it has entered into an agreement to acquire Klockner & Co. and the firm's discussion with management, KeyBanc is providing additional thoughts. With the transaction expected to close in the second half of 2026, the firm's estimates are unchanged. While the deal creates elevated net debt before deleveraging efforts, KeyBanc believes aggressive small-cap growth investors will be attracted to Worthington's tremendous long-term EPS potential with KCO.

KeyBanc

Overweight

maintain

$34 -> $36

2025-09-16

Reason

KeyBanc

Price Target

$34 -> $36

2025-09-16

maintain

Overweight

Reason

KeyBanc raised the firm's price target on Worthington Steel to $36 from $34 and keeps an Overweight rating on the shares. The firm cites FY26-FY27 estimate revisions, improved auto customer sentiment, and potential for Worthington Steel to make larger accretive acquisitions over the next 6-12 months.

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About WS

Worthington Steel, Inc. is a metal processor that partners with customers to deliver technical and customized solutions. The Company specializes in carbon flat-roll steel processing, electrical steel laminations and tailored-welded solutions. Its value-added processing capabilities include galvanizing, pickling, configured blanking, specialty cold reduction, lightweighting and electrical lamination. The Company operates approximately 38 facilities in seven states and 10 countries. It serves its customers primarily by processing flat-rolled steel coils, which it sources primarily from various North American steel mills, into the precise type, thickness, length, width, shape, and surface quality required by customer specifications. Its steel products include Hot Rolled Steel, cold rolled steel, and galvanized steel. The Company also produces electric motor laminations. The Company serves various end markets, including automotive, heavy truck, agriculture, construction, and energy.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Worthington Steel Launches Tender Offer for Kloeckner & Co

3 days agoNewsfilter

Offer Announcement: Following approval from BaFin, Worthington Steel GmbH has officially published its voluntary public tender offer for Kloeckner & Co SE, with the acceptance period commencing today and running until March 12, 2026, offering a cash consideration of €11.00 per share, indicating a strong intent to acquire Kloeckner.
Significant Premium Attracts Investors: The offer price represents a substantial premium of approximately 98% over the three-month volume-weighted average share price as of December 5, 2025, and about 81% over the closing price on the same date, providing Kloeckner shareholders with an attractive opportunity to realize value, likely encouraging positive shareholder response.
Shareholder Support Bolsters Confidence: Kloeckner's Management and Supervisory Boards have expressed their support for the offer and intend to recommend acceptance after reviewing the offer document, while SWOCTEM GmbH, Kloeckner's largest shareholder, has irrevocably committed to tendering approximately 42% of its shares, further enhancing market confidence in the transaction.
Potential Dividend Benefits: Shareholders who accept the offer may still benefit from a potential dividend payment for the 2025 financial year, with Kloeckner potentially paying up to €0.20 per share, which not only enhances shareholder return expectations but also adds attractiveness to Worthington Steel's acquisition strategy.

Micron Technology (MU) to Acquire Taiwanese Chip Fab for $1.8B

Jan 17 2026seekingalpha

Acquisition Announcement: Micron Technology has announced plans to acquire a chip fabrication site in Taiwan for $1.8 billion in cash, which will enhance its production capabilities in the global semiconductor market, particularly in AI and high-performance computing.
Market Consolidation: TransDigm has agreed to acquire Jet Parts Engineering and Victor Sierra Aviation Holdings for approximately $2.2 billion in cash, further solidifying its leadership position in the aerospace parts market, which is expected to boost its revenue and market share.
Steel Industry Restructuring: Worthington Steel announced the acquisition of metal processing firm Kloeckner & Co. for $2.4 billion, which is expected to make it the second-largest steel service center in North America, significantly enhancing its competitive position in the market.
Potential Merger: Coterra Energy is in talks with Devon Energy about a potential merger, which, if completed, would rank among the largest oil and gas deals in years, potentially reshaping the industry landscape and enhancing the market positions of both companies.

Worthington Steel (WS) Enters Acquisition Agreement with Kloeckner & Co, Shares Surge 6.9%

Jan 16 2026Benzinga

Acquisition Agreement: Worthington Steel Inc has entered into a Business Combination Agreement with Kloeckner & Co, planning a voluntary public offer to acquire all outstanding shares at €11 per share ($12.8), with management support and existing leadership expected to remain post-closing, thereby enhancing the company's market position and future growth potential.
Stock Surge: Following the acquisition announcement, Worthington Steel's shares jumped 6.9% to $41.43, reflecting positive market expectations and increased investor confidence, which may provide financial support for the company's future developments.
Industry Dynamics: On the same trading day, Kopin Corp shares rose 17.1% to $3.46, and ImmunityBio Inc shares increased by 17% to $4.62, indicating strong demand in the biotech and manufacturing sectors, potentially creating more investment opportunities for related companies.
Positive Market Reaction: The overall market showed mixed performance, with the Nasdaq Composite gaining around 100 points, demonstrating continued investor interest and confidence in tech stocks, which may create a favorable market environment for Worthington Steel's acquisition plans.