Correction - Outokumpu divests part of its European stock operations to Amari
Outokumpu is consolidating the Group’s stocking operations into a smaller number of locations in Europe and deepening cooperation with independent distributors.
Outokumpu has signed an agreement with Amari, a privately owned group of companies focusing on multi-metal distribution. According to the agreement, Outokumpu will sell 10 of its stock operations in nine countries to Amari, and thereby halves 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 cash consideration of the transaction is expected to be EUR 15-20 million, depending on the stock value at the closing of the transaction. Furthermore, following the transaction Outokumpu expects to book a non-recurring marginal impairment in its second quarter accounts.
Rationalisation of the distribution network is part of the Group’s ongoing programmes to reduce working capital by EUR 250 million and achieve cost savings of EUR 100 million.