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COLUMBUS, Ohio - Worthington Steel, Inc. (NYSE:WS), a leading metals processor with a market capitalization of $2.3 billion and impressive year-to-date returns of 65%, announced its subsidiary, Tempel Steel Company, LLC, will acquire a controlling equity stake in Italy-based Sitem S.p.A., a producer of electric motor laminations for the automotive and industrial sectors. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, suggesting strong positioning for strategic expansion. The deal, expected to close in early 2025, will give Worthington Steel approximately a 52% interest in Sitem Group, with options to increase its stake in the future.
The acquisition is contingent on regulatory approvals and customary closing conditions. Geoff Gilmore, President and CEO of Worthington Steel, expressed that the investment is aligned with the company's strategic goal to grow its electrical steel lamination business and expand its customer base, particularly in the electric vehicle market.
Sitem Group, with 50 years of experience and one of the largest electric motor lamination producers in Europe, operates six facilities across Italy, Switzerland, Slovakia, and France. Post-acquisition, Sitem Group's leadership team will continue to manage operations from its headquarters in Trevi, Italy.
Marco Bartoloni, CEO of Sitem Group, welcomed the partnership, highlighting the synergy between the two companies and the opportunity to better serve global customers in the automotive and industrial motor sectors.
Latham & Watkins LLP provided legal counsel to Worthington Steel for the transaction, while Sitem was advised by UniCredit, with Antonello Marcucci as a senior advisor and Bird & Bird for legal counsel.
Worthington Steel, known for its carbon flat-roll steel processing and electrical steel laminations, operates 32 facilities across seven states and six countries, employing approximately 5,000 people. The company emphasizes a people-first philosophy and is committed to sustainability and innovation. With annual revenues of $3.36 billion and strong cash flows, InvestingPro analysis reveals 12 additional key insights about the company's performance and prospects, available through their comprehensive Pro Research Report, which provides deep-dive analysis of what really matters for informed investment decisions.
This news article is based on a press release statement.
In other recent news, Worthington Steel has been under the investor's spotlight following its first-quarter 2025 results. The company's effective operational execution and upward trend in normalized profit metrics were highlighted by KeyBanc, which maintained its Overweight rating on the company with a steady price target of $40. The financial institution's analysis suggests that the company's strategic efforts align with its financial goals, and if growth initiatives are effectively executed, the stock could potentially reach a longer-term range between $40 and $50.
Following a comprehensive review of Worthington Steel's operations, KeyBanc Capital Markets raised its stock price target from $39 to $40. The primary reasons for this adjustment were improved value-added spreads and an increased potential for accretive mergers and acquisitions. These recent developments reflect the financial institution's confidence in Worthington Steel's strategic direction and its capability to achieve the set objectives.
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