EANS-News: Klöckner & Co SE / Entry into emerging markets: Klöckner & Co SE acquires majority of the third-largest independent steel and metal distributor in Brazil

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Mergers - Acquisitions - Takeovers

Duisburg (euro adhoc) - • Klöckner & Co acquires 70% of
Brazilian Frefer Group with sales in 2010 of approx. BRL 340 million
(approx. EUR150 million) • Company grows outpacing the very
rapidly expanding market and is very profitable • Another
significant move forward in the implementation of the "Klöckner & Co
2020" growth strategy • Transaction value represents a multiple
of 6.5 times five year projected average EBITDA

Duisburg, May 06, 2011 - As part of its "Klöckner & Co 2020"
strategy, Klöckner & Co has started its planned entry into emerging
markets by acquiring a 70% share of the third-largest independent
steel and metal distributor in Brazil. The acquisition is partly
conducted by way of a capital increase at Frefer Group, and thus,
further funds for expansion will be available in the company. The
Frefer Group is a flat steel focussed distribution and service center
company with around 360 employees at 14 locations in Brazil and 2010
sales of approx. BRL 340 million (approx. EUR150 million). The
company even outpaced the already strong market growth in recent
years. The EBITDA margin for the company is higher than the group
target average of 6%, which is the aim for acquisitions. Gisbert
Rühl, Chairman of the Executive Board of Klöckner & Co: "This
acquisition creates our first foothold in the emerging markets of
South America. We are thus making a further important step in the
implementation of our Klöckner & Co 2020 strategy after the
acquisition of Macsteel USA a few days ago. Our entry into the
emerging markets is intended to help us to pursue the goal of
participating in the strong growth in steel consumption within this
region and will put us into a better position to balance out the
various world market phases. The entry into the Brazilian market is
particularly attractive, not least because of the increased steel
consumption that will result from its hosting of the Soccer World Cup
and the Olympic Games. With Frefer we will take advantage of a strong
market position right from the start, which allows us to participate
disproportionately in these developments."

Key financial figures for the acquisition:
The acquisition is taking place at a price that is 6.5 times the projected
average EBITDA over a five-year planning horizon. The owner, who will retain
ownership of the remaining 30% shares, will continue in his capacity as CEO of
the company. Put and call options have been negotiated for the possible
subsequent transfer of minority interests which guarantee exclusivity and whose
parameters have already been determined.

About Frefer:
The Frefer Group is the third-largest independent steel and metal distributor in
Brazil. At 14 locations with its 360 employees, the company realized sales of
approx. BRL 340 million (approx. EUR150 million) in the fiscal year 2010. Sales
volumes were close to 200 Tto accordingly. Frefer is specialized in distribution
of flat steel products.

About Klöckner & Co:
Klöckner & Co is the largest producer-independent distributor of steel and metal
products and one of the leading steel service center companies in the European
and North American markets combined. The core business of the Klöckner & Co
Group is the warehousing and distribution of steel and non-ferrous metals as
well as the operation of steel service centers. More than 170,000 active
customers are supplied through around 280 distribution and service locations by
around 10,900 employees in 15 countries in Europe and North America. The Company
had sales of around EUR5.2 billion in the fiscal year 2010.

The shares of Klöckner & Co SE are admitted to trading on the
regulated market segment (Regulierter Markt) of the Frankfurt Stock
Exchange (Frankfurter Wertpapierbörse) with further post-admission
obligations (Prime Standard). Klöckner & Co shares are listed in the
MDAX®-Index of Deutsche Börse. ISIN: DE000KC01000; WKN: KC0100;
Common Code: 025808576.

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: Klöckner & Co SE
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Dr. Thilo Theilen
Leiter Investor Relations
Telefon: +49 (0)203 307 2050
E-Mail: thilo.theilen@kloeckner.de

Branche: Metal Goods & Engineering
ISIN: DE000KC01000
WKN: KC0100
Index: CDAX, Classic All Share, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade