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Worthington Steel to Acquire Controlling Equity Stake in Italy-Based Sitem Group

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Worthington Steel (NYSE: WS) has announced plans to acquire a 52% controlling stake in Italy-based Sitem Group through its subsidiary, Tempel Steel Company. Sitem Group, with 50 years of experience, is a major European producer of electric motor laminations for automotive and industrial applications. The transaction includes the acquisition of existing shares, contribution of Worthington's Nagold facility, and subscription of reserved share capital increases.

The deal, expected to close in early 2025, aligns with Worthington's strategy to expand its electrical steel lamination business and strengthen its presence in Europe's growing electric vehicle market. Sitem Group operates six facilities across Italy, Switzerland, Slovakia, and France, and its current leadership will continue to manage operations from Trevi, Italy.

Worthington Steel (NYSE: WS) ha annunciato piani per acquisire una partecipazione di controllo del 52% nel gruppo italiano Sitem Group attraverso la sua sussidiaria, Tempel Steel Company. Sitem Group, con 50 anni di esperienza, è un importante produttore europeo di lamelle di acciaio elettrico per applicazioni automobilistiche e industriali. La transazione include l'acquisizione di azioni esistenti, il conferimento dello stabilimento di Worthington a Nagold e l'abbonamento a aumenti di capitale riservati.

L'accordo, che si prevede di chiudere all'inizio del 2025, è in linea con la strategia di Worthington di espandere il proprio business nel settore delle lamelle di acciaio elettrico e rafforzare la propria presenza nel crescente mercato dei veicoli elettrici in Europa. Sitem Group gestisce sei stabilimenti in Italia, Svizzera, Slovacchia e Francia, e la sua attuale leadership continuerà a gestire le operazioni da Trevi, Italia.

Worthington Steel (NYSE: WS) ha anunciado planes para adquirir una participación de control del 52% en el grupo italiano Sitem Group a través de su subsidiaria, Tempel Steel Company. Sitem Group, con 50 años de experiencia, es un importante productor europeo de laminaciones de acero eléctrico para aplicaciones automotrices e industriales. La transacción incluye la adquisición de acciones existentes, la aportación de la instalación de Worthington en Nagold y la suscripción de aumentos de capital reservados.

El acuerdo, que se espera cerrar a principios de 2025, está alineado con la estrategia de Worthington de expandir su negocio de laminación de acero eléctrico y fortalecer su presencia en el creciente mercado de vehículos eléctricos de Europa. Sitem Group opera seis instalaciones en Italia, Suiza, Eslovaquia y Francia, y su actual liderazgo continuará gestionando las operaciones desde Trevi, Italia.

Worthy Steel (NYSE: WS)는 자회사인 Tempel Steel Company를 통해 이탈리아에 본사를 둔 Sitem Group52% 지분을 인수할 계획을 발표했습니다. Sitem Group은 50년의 경험을 가진 유럽의 주요 전기 모터 적층재 생산업체로, 자동차 및 산업용 애플리케이션을 위해 전기 모터 강판을 생산합니다. 이번 거래에는 기존 주식 인수, Worthington의 Nagold 시설 기여 및 자본 증대를 위한 유상증자 구독이 포함됩니다.

2025년 초에 마무리될 것으로 예상되는 이번 거래는 Worthington의 전기 강판 적층재 사업을 확장하고 유럽의 성장하는 전기차 시장에서 입지를 강화하려는 전략과 일치합니다. Sitem Group은 이탈리아, 스위스, 슬로바키아 및 프랑스에 걸쳐 6개의 시설을 운영하며, 기존 리더십은 이탈리아 Trevi에서 운영을 계속 관리할 것입니다.

Worthington Steel (NYSE: WS) a annoncé son intention d'acquérir une participation de contrôle de 52% dans le groupe italien Sitem Group par le biais de sa filiale, Tempel Steel Company. Sitem Group, avec 50 ans d'expérience, est un important producteur européen de tôles magnétiques pour moteurs électriques destinés aux applications automobiles et industrielles. La transaction comprend l'acquisition d'actions existantes, la contribution de l'installation de Worthington à Nagold et la souscription de plusieurs augmentations de capital réservées.

Le contrat, qui doit être finalisé début 2025, s'inscrit dans la stratégie de Worthington d'élargir son activité de lamination d'acier électrique et de renforcer sa présence sur le marché européen en pleine croissance des véhicules électriques. Sitem Group exploite six installations en Italie, en Suisse, en Slovaquie et en France, et sa direction actuelle continuera de gérer les opérations depuis Trevi, en Italie.

Worthington Steel (NYSE: WS) hat Pläne angekündigt, eine 52%ige Kontrolle an der in Italien ansässigen Sitem Group über ihre Tochtergesellschaft Tempel Steel Company zu erwerben. Sitem Group, mit 50 Jahren Erfahrung, ist ein bedeutender europäischer Hersteller von Elektro-Motorlamellen für Anwendungen in der Automobil- und Industriebranche. Die Transaktion umfasst den Erwerb bestehender Anteile, die Einbringung der Worthington-Anlage in Nagold und die Zeichnung von reservierten Kapitalerhöhungen.

Der Deal, der voraussichtlich Anfang 2025 abgeschlossen wird, steht im Einklang mit der Strategie von Worthington, sein Geschäft mit Elektro-Stahl-Lamellen zu erweitern und seine Präsenz im wachsenden europäischen Markt für Elektrofahrzeuge zu stärken. Sitem Group betreibt sechs Einrichtungen in Italien, der Schweiz, der Slowakei und Frankreich, und die derzeitige Führung wird die Geschäfte weiterhin aus Trevi, Italien, leiten.

Positive
  • Acquisition of 52% controlling stake in a major European electric motor laminations producer
  • Strategic expansion into Europe's growing electric vehicle market
  • Addition of six manufacturing facilities across Europe
  • Option to increase ownership stake in the future
  • Retention of experienced Sitem Group management team
Negative
  • Regulatory approval pending
  • Financial terms not disclosed

Insights

This strategic acquisition strengthens Worthington Steel's position in the rapidly growing electric vehicle market. By acquiring a 52% stake in Sitem Group, the company gains significant manufacturing capabilities across six European facilities and expands its electrical steel lamination business. The deal's structure, including the contribution of the Nagold facility and future ownership increase options, demonstrates a well-planned expansion strategy.

The timing aligns with Europe's accelerating EV adoption, where the market for electrical motor components is experiencing substantial growth. Sitem Group's established presence and half-century of expertise in electric motor laminations provides Worthington immediate market access and technical capabilities. The retention of Sitem's leadership team ensures operational continuity and preserves valuable customer relationships.

The acquisition positions Worthington Steel strategically in Europe's EV supply chain at a important time. As automakers accelerate their transition to electric and hybrid vehicles, having local manufacturing capabilities for critical components like motor laminations is essential. Sitem Group's diverse facility network across Italy, Switzerland, Slovakia and France provides optimal geographic coverage to serve major European automakers.

The deal enhances Worthington's ability to support global automotive programs with comprehensive manufacturing and technical support - a key requirement for major OEM contracts. The combined expertise of both companies in electrical steel processing creates a competitive advantage in securing new EV platform business.

COLUMBUS, Ohio--(BUSINESS WIRE)-- Worthington Steel, Inc. (NYSE: WS) (“Worthington Steel” or the “Company”) announced today that it has reached an agreement to acquire through its subsidiary, Tempel Steel Company, LLC (“Tempel”), a controlling equity stake in Italy-based Sitem S.p.A. (together with its subsidiaries, Stanzwerk AG, Decoup S.A.S. and Sitem Slovakia spol. s r.o., “Sitem Group”). Sitem Group produces electric motor laminations and accessory products for automotive and industrial applications in Europe. Worthington Steel will acquire, through the acquisition of shares from existing shareholders of Sitem Group, the contribution of Worthington Steel’s Nagold, Germany, facility and the subscription of reserved share capital increases, an approximately 52% stake in Sitem Group with the option to increase ownership in the future. The transaction is expected to close in early 2025, subject to the receipt of applicable regulatory approvals and customary closing conditions.

“This investment aligns with our strategic goal to grow our electrical steel lamination business and expand our customer reach,” said Geoff Gilmore, Worthington Steel president and CEO. “Sitem Group brings 50 years of experience and is one of the largest producers of electric motor laminations in Europe. The Worthington Steel and Sitem Group leadership teams bring valuable expertise and relationships to spearhead the expansion of our global automotive programs in the production of electric vehicles and hybrids.”

Establishing a strong presence in Europe, a key and rapidly growing region for the electric vehicle market, is a vital component of the Company's strategy to leverage this emerging global trend. This investment marks another significant step in Worthington Steel’s plan while meeting customer expectations for comprehensive global manufacturing and technical support.

Sitem Group operates six facilities in Europe including Italy (three), Switzerland, Slovakia and France. Sitem’s leadership, including Chairman Fabrizio Scarca, CEO Marco Bartoloni and Chief Purchasing Officer Gabriella Scarca, will continue to lead the business from the Sitem Group headquarters in Trevi, Italy.

“We are excited to partner with Worthington Steel,” said Sitem Group CEO Marco Bartoloni. “This investment and partnership will enable us to better serve global automotive and industrial motor customers. Their philosophy aligns with our values and is a great fit for our employees.”

Latham & Watkins LLP served as legal counsel to Worthington Steel on the transaction. Sitem was advised by UniCredit as financial advisor, Antonello Marcucci as senior advisor and Bird & Bird as legal counsel.

About Sitem S.p.A.

Founded in 1974, Sitem Group is headquartered and has one of its manufacturing facilities in Trevi, Perugia, Italy with two additional manufacturing facilities of Sitem S.p.A. in Milan, Italy, of Stanzwerk AG in Unterentfelden, Switzerland, of Sitem Slovakia spol. s r.o in Spišská Nová Ves, Slovakia and of Decoup S.A.S. in Villenaux-La-Grande, France.

About Worthington Steel

Worthington Steel (NYSE:WS) is a metals processor that partners with customers to deliver highly technical and customized solutions. Worthington Steel’s expertise in carbon flat-roll steel processing, electrical steel laminations and tailor welded solutions are driving steel toward a more sustainable future.

As one of the most trusted metals processors in North America, Worthington Steel and its approximately 5,000 employees harness the power of steel to advance our customers’ visions through value-added processing capabilities including galvanizing, pickling, configured blanking, specialty cold reduction, lightweighting and electrical lamination. Headquartered in Columbus, Ohio, Worthington Steel operates 32 facilities in seven states and six countries. Following a people-first Philosophy, commitment to sustainability and proven business system, Worthington Steel’s purpose is to generate positive returns by providing trusted and innovative solutions for customers, creating opportunities for employees and strengthening its communities.

Safe Harbor Statement

This press release includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements regarding the Company’s proposed acquisition of a controlling equity stake in Sitem Group, the expected timeline for completing the transaction, the anticipated benefits of the transaction to the Company’s business and financial results, strategies, outlook, prospects, plans, objectives, expectations, future events and other statements that are not historical or current fact. Forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause the Company’s results to differ materially from current expectations include, but are not limited to, risks and uncertainties regarding the Company’s and Sitem Group’s respective businesses and the proposed acquisition, and actual results may differ materially. These risks and uncertainties include, but are not limited to, (i) the ability of the parties to successfully complete the proposed acquisition on the anticipated terms and timing, including obtaining required regulatory approvals and other conditions to the completion of the acquisition, (ii) the financing arrangements relating to the acquisition, (iii) the effects of the transaction on the Company’s and Sitem Group’s operations, including on the combined company’s future financial condition and performance, operating results, strategy and plans, including anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, losses, future prospects, and business and management strategies for the management, expansion and growth of the new combined company’s operations, (iv) the potential impact of the announcement or consummation of the proposed acquisition on relationships with customers, suppliers and other third parties, and (v) the other factors detailed in the Company’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q under the caption “Risk Factors,” as well as the other risks discussed in the Company’s filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. The Company disclaims any duty to update the information herein.

Melissa Dykstra

Vice President

Corporate Communications and Investor Relations

Phone: 614-840-4144

Melissa.Dykstra@worthingtonsteel.com

Source: Worthington Steel, Inc.

FAQ

When will Worthington Steel (WS) complete the Sitem Group acquisition?

The transaction is expected to close in early 2025, subject to regulatory approvals and customary closing conditions.

What percentage stake is Worthington Steel (WS) acquiring in Sitem Group?

Worthington Steel is acquiring approximately 52% controlling stake in Sitem Group, with an option to increase ownership in the future.

How many facilities does Sitem Group operate in Europe?

Sitem Group operates six facilities across Europe: three in Italy, and one each in Switzerland, Slovakia, and France.

What is the strategic rationale behind Worthington Steel's (WS) acquisition of Sitem Group?

The acquisition aligns with Worthington Steel's strategic goal to grow its electrical steel lamination business, expand customer reach, and establish a strong presence in Europe's growing electric vehicle market.

Worthington Steel, Inc.

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