Tenaris to Acquire IPSCO Tubulars from TMK
March 22 2019 - 8:58AM
Tenaris S.A. (NYSE, Buenos Aires and Mexico: TS and MTA Italy: TEN)
announced today 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 U.S. subsidiary IPSCO
Tubulars, Inc., for US$1,209 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 U.S. antitrust authorities,
and other customary conditions.
IPSCO Tubulars is a U.S. 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 U.S. market. This
acquisition would mark a further step in our journey as a domestic
producer and supplier to the U.S. oil and gas industry.”
Some of the statements contained in this press
release are "forward-looking statements". Forward-looking
statements are based on management's current views and assumptions
and involve known and unknown risks that could cause actual
results, performance or events to differ materially from those
expressed or implied by those statements.
Tenaris is a leading global supplier of steel
tubes and related services for the world’s energy industry and
certain other industrial applications.
Giovanni Sardagna
Tenaris1-888-300-5432www.tenaris.com
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