Schmolz+Bickenbach nears sale of distribution unit -sources

Jacquet Metals SA

15/03/2015 12:57

FRANKFURT, March 15 (Reuters) - Swiss steel group 
Schmolz+Bickenbach  STLN.S  is nearing the sale of some 
distribution activities as it aims to focus on stainless steels 
production, a source familiar with the deal said.  
    Schmolz+Bickenbach has entered exclusive talks with France's 
Jacquet Metal Service  JCQ.PA , which is planning to take on 
Schmolz's distribution activities in Germany, Austria and the 
Benelux countries for less than 100 million euros ($105 
million), the source said.  
    "The signing will likely take place later this month," the 
source said.  
    On Thursday, Schmolz+Bickenbach announced that it had 
resumed discussions on the sale of the business.  ID:nFWN0WD02F  
    The activities that Schmolz+Bickenbach is seeking to divest 
have sales of 600 million euros and employ roughly 1000 staff. 
The deal will make Jacquet the leading European trader of 
special steels for machine tool makers and the automotive 
industry.  
    Jacquet has been an acquisitive company in recent years, 
buying significantly larger peer IMS in a headline-grabbing, 
initially hostile deal in 2010. It added smaller companies from 
Germany and Canada in 2013 and 2014.  
    Schmolz+Bickenbach has also grown fast through a number of 
acquisitions over the last decade and has changed its profile 
from being a steel processor and trader to producing stainless 
steels. Selling the low-margin business will improve the 
profitability of the whole group. 
    Schmolz+Bickenbach and Jacquet Metal Service were not 
available for immediate comment. 
    Rothschild, which is advising Jacquet, declined to comment 
as did Lazard, which is advising Schmolz+Bickenbach.  
    ($1 = 0.9531 euros) 
 
 (Reporting by Arno Schuetze; additional reporting by Oliver 
Hirt; editing by Jason Neely) 
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters 
Messaging: arno.schuetze.reuters.com@reuters.net)) 
 
Keywords: SCHMOLZBICKENBACH M&A/