Tibnor has completed the acquisition of Denmark's second largest steel distributor, Sanistål.
The acquisition was announced November 2018 and approved by the Danish competition authority in March 2019.
The acquistion supports SSAB's strategic target to strengthen its Nordic home market position.
The steel distribution business acquired had sales of around €1.8 billion.
The Sanistål acquisition will considerably improve the position of Tibnor in Denmark. For SSAB, a stronger steel distribution channel provides an attractive channel to grow steel sales, and will also improve the ability to manage business cycles.
Based on the acquisition, SSAB and Tibnor expect annual synergies of approximately
€4.8 million to be realised within three years, in addition to strengthening the platform for SSAB’s Nordic steel business and increasing working capital efficiency. Tibnor acquired Sanistål’s steel distribution business as an asset deal at net value of approximately €60.3 million. The acquisition is expected to be earnings and cash flow accretive from closing.
The acquisition includes Sanistål’s modern and highly automated steel distribution centre (42,000 square metres) in Taulov and four other sales offices in Denmark as well as a sales office in Latvia. Around 130 employees will transfer to Tibnor as part of the transaction.