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.
Mr Franz Rotter member of the Management Board of voestalpine AG and head of the Special Steel Division said that "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. 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.
