14-12-2012 — /europawire.eu/ — The listed voestalpine Group continues to further expand its market position in North America by undertaking an acquisition in its special steel segment. Böhler-Uddeholm Canada Ltd., a company of voestalpine’s Special Steel Division, acquires the Canadian company Sturdell Industries Inc., which is headquartered in Rexdale (Toronto) and has another site in Rochester, NY, in the USA. The company, which specializes in the machining of mold steel, offers a wide range of services, and provides distribution in close proximity to its customers, has a staff of around 80 employees. Most recently, it posted a positive operating result and annual revenues in the equivalent of more than EUR 19 million. The parties have agreed not to disclose the purchase price.
“This acquisition expands the Special Steel Division’s service portfolio in Canada and the northeast of the USA and effectively enhances our already very good market position in North America,” emphasized Franz Rotter, member of the Management Board of voestalpine AG and head of the Special Steel Division. “Therefore, this acquisition represents an important step in our long-term strategy, which is focused on the creation of enhanced added value. At the same time, we secure business with important, existing customers in this region.”
Sturdell Industries is active on the North American market primarily in mechanical processing of mold steel (customer-specific pre-processing steps such as sawing, milling, grinding, and drilling) and has distinguished itself through its high level of service orientation. Both sites of the acquired company are in the vicinity of existing sales offices of the Special Steel Division, which will enable both companies to leverage synergies in the marketplace and optimize capacity utilization and cost structure.
In addition to this acquisition, a substantial investment project is currently being implemented at existing Canadian locations; it entails an expansion of facilities for heat treatment and surface refinement. The new facilities will start up operations in the near future. The Special Steel Division of the voestalpine Group already operates 25 sites in North America and, with approximately 470 employees, generated revenue in the past business year of around EUR 183 million in North America .
The Special Steel Division of the voestalpine Group
voestalpine Special Steel Division, one of four divisions of the voestalpine Group, is focused on technologically most demanding materials and customer-specific services. The division is global market leader in tool steel and has a leading position in high-speed steels and special forgings. Major customer segments are automobile, energy (production and oil/gas exploration), civil and mechanical engineering, the consumer goods industry and aerospace. With its two business units High Perfomance Metals and Special Forgings, the division achieved revenues of just under EUR 3 billion in the business year 2011/12, thereof approx. 40% outside of Europe, an operating result (EBITDA) of EUR 430 million and had a staff of 12,400 employees.
The voestalpine Group
The voestalpine Group is a steelmaking, processing, and technology group that operates worldwide and manufactures, processes and develops high-quality steel products. With 500 production and sales companies in more than 50 countries on five continents, the Group has been listed on the Vienna Stock Exchange since 1995. With its top-quality flat steel products, the Group is one of the leading partners to the automotive and domestic-appliance industries in Europe and to the oil and gas industries worldwide. The voestalpine Group is also the world market leader in railway switch technology, special rails, tool steel, and special sections. In the 2011/12 business year, the voestalpine Group reported revenue of more than EUR 12 billion and an operating result (EBITDA) of EUR 1.3 billion. It staffs roughly 46,500 employees worldwide.