Tenaris S.A. has announced that it has entered into a definitive agreement to acquire from PAO TMK, a Russian company and manufacturer of steel pipe, 100% of the shares of its wholly owned US subsidiary IPSCO Tubulars, Inc., for US$1209 million, on a cash-free, debt-free basis, which includes US$270 million of working capital.
The transaction is subject to regulatory approvals, including approval by the US antitrust authorities, and other customary conditions.
IPSCO Tubulars is a US domestic producer of seamless and welded OCTG and line pipe products, with an annual production capacity of 450 000 metric tons of steel bars, 400 000 metric tons of seamless pipe and 1 000 000 metric tons of welded pipe, and production facilities spread throughout the country.
The acquisition would enhance Tenaris’s position and local manufacturing presence in the U.S. market, extending its product offering and expanding its service footprint. It would add a first U.S. steel bar production facility at Koppel, PA, complement its seamless production in Bay City, TX with a second facility in Ambridge, PA, and bring additional welded, heat treatment and finishing facilities to better serve customers throughout the country.
Paolo Rocca, Chairman and CEO of Tenaris, commented: “Over the past 15 years, we have been expanding our manufacturing presence and positioning in the US market. This acquisition would mark a further step in our journey as a domestic producer and supplier to the US oil and gas industry.”
Read the article online at: https://www.oilfieldtechnology.com/special-reports/25032019/tenaris-to-acquire-ipsco-tubulars-from-tmk/