Klöckner acquires National Material of Mexico

Klöckner & Co's US-based subsidiary, Kloeckner Metals Corporation (KMC), has acquired 100% of the capital stock of National Material of Mexico from Tang Industries, Inc. and NM Holding, Inc. along with two subsidiary Mexican companies.

Posted mardi, août 15 2023
Klöckner acquires National Material of Mexico

The acquisition significantly expands KMC’s presence in Mexico, providing access to major industrial and automotive customers.

The transaction was valued at $340 million in cash and with no incurring of debt on behalf of the buyer.

Klöckner & Co is one of the largest producer-independent distributors of steel and metal products and one of the leading steel service companies worldwide. Based on its distribution and service network of around 160 sites in 13 countries, Klöckner & Co supplies more than 90,000 customers. Currently, the Group has about 7,700 employees. Klöckner & Co had some €9.4 billion in sales in fiscal year 2022.

KMC is a subsidiary of Klöckner & Co headquartered in Roswell, Georgia. It is one of the largest distributors of steel and metal products and one of North America's leading steel service companies. The company has around 2,600 employees at 56 branches across the USA and Mexico and generated pro forma sales of $5.4 billion in fiscal year 2022. 

NMM, established in 1999 and headquartered in the northern Mexican city of Monterrey, is a leading independent service center and supplier of carbon and electrical steel, aluminum, and stainless steel. With 10 facilities across Mexico and a team of over 500 professionals, NMM serves North America's automotive and industrial end markets.

Klöckner was advised in Mexico by Mexican law firm Basham, Ringe y Correa, and whose legal assistance covered various critical services, including conducting full due diligence of NMM and its subsidiaries, negotiating and drafting transaction documents, assisting with antitrust approval filing, conducting environmental analyses, and addressing data privacy compliance.

The deal also involved discussions with financial advisors and structuring representation and warranties insurance terms.

Basham, Ringe y Correa’s team advising KMC was led by partner Juan C. Serra, with Pablo Nosti, Fernando Morayta, Carolina Nogal, Fernando Osante,  Amilcar Peredo, Juan María López and  León Jiménez.

KMC was advised in the US by Troutman Pepper Hamilton Sanders LLP  in Atlanta, with a team led by Andrea Farley, Joseph Kadlec, Michael Seymour, Barbara Sicalides, William Mayo and Victor Noriega.

Mayer Brown, LLP represented Tang and NM Holding, with a team comprising Peter Wolf, Nina Flax and Dylan C. Platt.

NMM was represented by  EC Rubio, with a team comprising Daniel Magaña and Eduardo David García, while KMC’s in-house counsel was Carolyn Vignery and NMM’s in-house counsel was Vytas Ambutas.