Salzgitter AG has signed a contract to acquire the Graz and Gratkorn based operations of Kovac Stahl, Graz Austria. Kovac Stahl, which has a workforce of around 130 employees, operates steel trading and steel service center activities at its various locations. With shipments of more than 40,000 tonnes, the company generated sales of approximately EUR 47 million in 2011.
Salzgitter AG's Trading Division's has strengthened its market position in Austria through the acquisition of these Kovac Stahl sites and will be represented in future in this market through its own warehouse location. Moreover, the transaction has extended the division's portfolio in the field of thermal separating technologies revolving around laser cutting.
The Graz and Gratkorn locations were founded by the Kovac family and managed as family business to date. The prerequisites for the ongoing success and further growth of these operations under the roof of Germany's second largest steel manufacturer have been put in place.
The parties have agreed to not disclose the purchase price. The acquisition is subject to approval by the anti trust authority.
Source - Salzgitter