Worthington Steel Acquires Significant Stake in Sitem Group
Deal News | Dec 03, 2024 | Finance Community IT - 1 Corporate M&A
Worthington Steel, through its subsidiary Tempel Steel Company, has acquired a controlling stake in Italy-based Sitem Group, alongside its subsidiaries including Stanzwerk AG, Decoup S.A.S., and Sitem Slovakia spol. s r.o. Sitem Group is one of Europe's leading producers of laminations for electric motors and complementary products for automotive and industrial applications. Worthington Steel will own approximately 52% of Sitem Group's shares and has the option to increase its ownership in the future. The transaction, expected to close in early 2025, is contingent upon receiving the necessary regulatory approvals and fulfilling standard closing conditions. UniCredit served as the sole financial advisor to the sellers, alongside legal advice from Bird & Bird, while Worthington Steel received legal counsel from Latham & Watkins LLP. This acquisition aligns with Worthington Steel's strategic goals to expand their roll of electric steel operations and broaden customer reach, particularly in the rapidly growing European electric vehicle market. Sitem Group, with a long history and established leadership, will continue operations from its headquarters in Trevi, Italy, undercurrent management. This investment marks a significant step towards fulfilling Worthington Steel’s ambitions in the global automotive electrification trend.
Sectors
- Metals and Mining
- Automotive
Geography
- Italy – Italy is central as it's the base for Sitem Group, the target entity in this acquisition.
- Germany – Worthington Steel will incorporate its Nagold facility into the acquisition framework, highlighting Germany's relevance.
- Europe – As the acquisition strengthens Worthington's hold in the European market, especially in electric vehicle components.
Industry
- Metals and Mining – Relevant due to Worthington Steel's involvement as a steel company and its acquisition strategy to expand electric steel operations.
- Automotive – Sitem Group produces components for electric engines, emphasizing the automotive industry's shift towards electrification.
Financials
- 52% – Stake acquired by Worthington Steel in Sitem Group, with an option for future increase.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Worthington Steel | Bidding Company | Company | A leading steel producer acquiring a controlling interest in Sitem Group to enhance its market reach. |
| Sitem Group | Target Company | Company | Manufactures laminations for electric motors and automotive components, headquartered in Trevi, Italy. |
| Tempel Steel Company | Subsidiary | Company | Subsidiary of Worthington Steel facilitating the acquisition. |
| UniCredit | Financial Advisor | Company | Acted as the sole financial advisor for Sitem Group. |
| Bird & Bird | Legal Advisor | Company | Provided legal counsel to Sitem Group during the transaction. |
| Latham & Watkins LLP | Legal Advisor | Company | Offered legal advice to Worthington Steel. |