Worthington Steel announced today its agreement to acquire a controlling equity stake in Sitem S.p.A., an Italy-based company specializing in electric motor laminations and accessory products for automotive and industrial applications across Europe. The acquisition will be executed through Worthington’s subsidiary, Tempel Steel Company, LLC (Tempel). This strategic move aligns with Worthington’s ongoing efforts to strengthen its presence in the global electric vehicle (EV) market.
The acquisition includes shares from Sitem Group’s existing shareholders, the contribution of Worthington Steel’s Nagold, Germany, facility, and the subscription of reserved share capital increases. These combined actions will give Worthington Steel an approximately 52% ownership stake in Sitem Group, with an option to increase this stake in the future. The transaction is set to close in early 2025, pending regulatory approvals and customary closing conditions.
Geoff Gilmore, President and CEO of Worthington Steel, emphasized the strategic significance of this acquisition, stating:
“This investment aligns with our strategic goal to grow our electrical steel lamination business and expand our customer reach. Sitem Group brings 50 years of expertise and is one of the largest producers of electric motor laminations in Europe. Together, the Worthington Steel and Sitem Group leadership teams will drive the expansion of our global automotive programs, particularly in the production of electric vehicles and hybrids.”
Strengthening European Presence
Europe is a rapidly growing region for the EV market, making this investment a key milestone for Worthington Steel. Establishing a strong operational foothold in Europe supports the company’s broader strategy of leveraging emerging global trends in the electrification of mobility. Furthermore, this acquisition demonstrates Worthington’s commitment to providing customers with comprehensive global manufacturing and technical support.
Sitem Group currently operates six manufacturing facilities across Europe, including three in Italy, one in Switzerland, one in Slovakia, and one in France. These strategically located facilities position the company to serve automotive and industrial motor customers effectively.
Leadership Continuity and Collaboration
Sitem Group’s leadership team will remain intact, with Chairman Fabrizio Scarca, CEO Marco Bartoloni, and Chief Purchasing Officer Gabriella Scarca continuing to lead the business from its headquarters in Trevi, Italy. CEO Marco Bartoloni expressed enthusiasm about the partnership, stating:
“We are excited to partner with Worthington Steel. This investment and partnership will enable us to better serve global automotive and industrial motor customers. Their philosophy aligns with our values and is a great fit for our employees.”
Broader Implications for the EV Market
The partnership between Worthington Steel and Sitem Group represents a significant development in the global EV industry. By leveraging Sitem’s 50 years of experience and its extensive manufacturing network, Worthington Steel is poised to enhance its role in the production of electric and hybrid vehicles. This collaboration aims to meet the increasing demand for high-quality electric motor components, a critical factor in the electrification of mobility.
Legal and Financial Advisors
To facilitate the transaction, Worthington Steel engaged Latham & Watkins LLP as its legal counsel. Sitem Group received advisory support from UniCredit as financial advisor, Antonello Marcucci as senior advisor, and Bird & Bird as legal counsel.
About Sitem Group
Founded in 1974, Sitem Group is headquartered in Trevi, Perugia, Italy. The company operates additional manufacturing facilities in Milan, Italy; Unterentfelden, Switzerland; Spišská Nová Ves, Slovakia; and Villenaux-La-Grande, France. As one of the leading producers of electric motor laminations in Europe, Sitem Group has built a reputation for delivering high-quality products to automotive and industrial markets.
Looking Ahead
This acquisition underscores Worthington Steel’s dedication to innovation and growth within the rapidly evolving EV market. By combining Sitem Group’s manufacturing capabilities with Worthington’s strategic vision and resources, the partnership sets the stage for transformative advancements in electric mobility.
The transaction not only bolsters Worthington Steel’s position in Europe but also reflects a broader commitment to supporting the transition to sustainable transportation solutions. With the deal expected to close in early 2025, both companies are poised to capitalize on emerging opportunities in the global EV market.
