Finland-based steelmaker Outokumpu has announced that it is consolidating its stocking operations into a smaller number of locations in Europe and is deepening cooperation with independent distributors.
Under the agreement signed with Europe-based metal distributor Amari, Outokumpu will sell 10 of its stock operations in nine countries to Amari, and thereby halve the number of its own stock locations. In conjunction with the transaction, approximately 100 Outokumpu employees will transfer to Amari.
Subject to Outokumpu board approval and customary closing conditions, the transaction is expected to be completed during the third quarter of 2012. The total consideration of the transaction is expected to be €15-20 million, depending on the stock value at the closing of the transaction. Additionally, following the transaction Outokumpu expects to book a marginal loss in its third quarter accounts.