Tenaris announced that it has entered into a definitive agreement to acquire from PAO TMK 100% of the shares of its wholly owned US subsidiary IPSCO Tubulars for $1,209 million, on a cash-free, debt-free basis, which includes $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 US market, extending its product offering and expanding its service footprint. It would add a first US 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.
“Over the past 15 years, we have been expanding our manufacturing presence and positioning in the US market,” Paolo Rocca, Chairman and CEO of Tenaris, said. “This acquisition would mark a further step in our journey as a domestic producer and supplier to the US oil and gas industry.”