Case study: Transformation of a steel service center

From volume business to profitable niche champion

This case study is based on our founders’ experience from previous activities.

Iserlohn, Germany

Headquarters

2017 – 2023

Period (acquisition – exit)

Steel Service Center

Business model

EUR 95m / EUR 5m

Revenues / EBITDA in 2022

Automotive, Industrial, Machinery

End markets

Stemcor (UK)

Seller

Stacks of coiled steel rolls in various sizes and finishes organized in a steel service center, showcasing the variety of steel products available for industrial use.
Parking place in front of the PKS headquarters
Stacks of coiled steel rolls in various sizes and finishes organized in a steel service center, showcasing the variety of steel products available for industrial use.

Initial situation at takeover

  • Subsidiary of a group without strategic relevance

  • Declines in sales over several years

  • High dependence on the automotive industry

  • Lack of strategic control by management

  • High supplier concentration without purchasing synergies

  • No systematic performance and KPI tracking

Measures implemented & transformation successes

Sales & Marketing

  • Introduction of dynamic pricing with over 20 factors

  • Focus on high-margin customers and products instead of pure volume growth

  • Reorganization of the sales structure with new KPIs and incentive systems

Procurement

  • Establishment of a central purchasing department and optimization of the supply chain

  • Diversification of the supplier base to minimize risk and optimize costs

Production

  • Investments in technology and automation (e.g., new control systems)

  • Introduction of flexible shift models and multi-machine operation

Transparency

  • Integration of production into ERP system

  • Introduction of a digital workflow and document management system

Value Added

  • Faster and more structured carve-out with creation of missing functional areas

  • Improved market position through diversification of customer and supplier base

  • Sustainable efficiency gains through investments and optimized processes

  • Financial stability through the introduction of working capital financing

  • Clear control mechanisms for data-driven decisions

+31 M Euro

Revenue

+2.4 M Euro

EBITDA