Worthington Industries To Purchase Electrical Steel Company Tempel Steel
November 01 2021 - 9:00AM
Worthington Industries, Inc. (NYSE:WOR) today announced that its
Steel Processing segment has signed an agreement to acquire Tempel
Steel Company, one of the world's leading manufacturers of
precision motor and transformer laminations for the electrical
steel market. Tempel is a global business and manufactures in five
facilities located in Chicago, Canada, China, India and Mexico.
“Acquiring Tempel will immediately make us a market leader in
the rapidly growing electrical steel market that includes
transformers, machine motors and electric vehicle (EV) motors,”
said President and CEO Andy Rose. “Worthington’s experience and
deep relationships in the automotive sector will position Tempel to
further penetrate the growing hybrid and EV market.” Rose added,
“As EVs are embraced globally and the electricity infrastructure is
upgraded and expanded to accommodate the shift to electric motors,
we’re excited about what our organizations can do together on a
global scale.”
Leveraging the latest engineering technology, Tempel’s
proprietary manufacturing techniques provide customers with highly
engineered, precision-stamped, electrical steel laminations used
for the core of electric motors, transformers and generators. With
hybrids and EVs expected to continue growing at double-digit rates
worldwide, Tempel will significantly enhance Worthington’s existing
automotive offerings, including its lightweighting technology and
laser welded solutions that deliver weight and cost reductions and
increased fuel efficiency to the mobility market. Tempel also
serves the important electricity infrastructure and distribution
markets, which are expected to see significant investment and
growth to support the transition to electric motors across multiple
industries.
The transaction is expected to close in December 2021 with a
purchase price of approximately $255 million plus the assumption of
certain liabilities, funded primarily with existing cash. Tempel
generated net revenue of approximately $377 million and EBITDA of
$35 million, adjusted to exclude estimated inventory holding gains,
for the trailing twelve months ended Sept. 30, 2021. Founded in
1945, Tempel is headquartered in Chicago with additional
manufacturing facilities in Burlington, Canada, Changzhou, China,
Chennai, India and Monterrey, Mexico, with 1,500 employees. For
more information on Tempel visit www.tempel.com.
A presentation with additional information can be found on the
investor relations section of the Company’s website. In addition,
the Company will discuss the Tempel acquisition in more detail
during its previously announced Investor and Analyst day scheduled
for Nov. 10, 2021 at 9:30 a.m. ET. Investors and analysts
interested in attending this virtual event may register by visiting
the Company’s website at www.WorthingtonIndustries.com or emailing
Investors@worthingtonindustries.com for additional information.
About Worthington IndustriesWorthington
Industries (NYSE:WOR) is a leading industrial manufacturing company
pursuing its vision to be the transformative partner to its
customers, a positive force for its communities and earn
exceptional returns for its shareholders. For over six decades, the
Company has been delivering innovative solutions to customers
spanning industries such as automotive, energy, retail and
construction. Worthington is North America’s premier value-added
steel processor and producer of laser welded solutions that provide
lightweighting and safety critical components to the mobility
market. Through on-board fueling systems and gas containment
solutions, Worthington serves the growing global hydrogen
ecosystem. The Company’s focus on innovation and manufacturing
expertise extends to market-leading consumer products in tools,
outdoor living and celebrations categories, sold under brand names,
Coleman®, Bernzomatic®, Balloon Time®, Mag Torch®, Well-X-Trol®,
General®, Garden-Weasel®, Pactool International® and Hawkeye™; as
well as market leading building products, including water systems,
heating & cooling solutions, architectural and acoustical grid
ceilings and metal framing and accessories.
Headquartered in Columbus, Ohio, Worthington
operates 53 facilities in 15 states and seven countries, sells into
over 90 countries and employs approximately 8,000 people. Founded
in 1955, the Company follows a people-first philosophy with earning
money for its shareholders as its first corporate goal.
Relentlessly finding new ways to drive progress and transform,
Worthington is committed to providing better solutions for
customers and bettering the communities where it operates by
reducing waste, supporting community-based non-profits and
developing the next generations of makers.
Safe Harbor Statement The Company wishes to
take advantage of the Safe Harbor provisions included in the
Private Securities Litigation Reform Act of 1995 (the “Act").
Statements by the Company which are not historical information
constitute "forward looking statements" within the meaning of the
Act. All forward-looking statements are subject to risks and
uncertainties which could cause actual results to differ from those
projected. Factors that could cause actual results to differ
materially include risks, uncertainties and impacts described from
time to time in the Company's filings with the Securities and
Exchange Commission, including those related to COVID-19 and the
various actions taken in connection therewith, which could also
heighten other risks.
SONYA L. HIGGINBOTHAMVP, CORPORATE
COMMUNICATIONS AND BRAND
MANAGEMENT614.438.7391 | sonya.higginbotham@worthingtonindustries.com
MARCUS A. ROGIERTREASURER AND
INVESTOR RELATIONS OFFICER614.840.4663 |
marcus.rogier@worthingtonindustries.com
200 Old Wilson Bridge Rd. | Columbus, Ohio 43085WorthingtonIndustries.com
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