GESCO SE: Doerrenberg Sells Foundry and Steelworks Business Units

Doerrenberg Edelstahl GmbH, a subsidiary of GESCO SE, has sold its "Foundry" and "Steelworks" units to Callista Private Equity GmbH. The sale, effective January 1, 2025, followed intensive deliberations to find a long-term solution for the units. Although the purchase price remains undisclosed, the transaction is expected to positively transform Doerrenberg and affect around €4.5 million in one-time charges on GESCO's 2024 results.

The sale will likely increase future EBIT by a low single-digit million amount annually. Sales in the current year are €19 million, compared to €28 million the previous year, due to market challenges and competitive pressures. The transaction excludes Doerrenberg's Surface Technology and Construction Solutions units, allowing it to focus on tool steel distribution.

The forecast for GESCO's annual result has been adjusted to between €3.5 million and €7.5 million due to the expected one-off effects.