Tenaris S.A. (NYSE, Buenos Aires and Mexico: TS and MTA Italy: TEN)announced that it has entered into a definitive agreement to acquire from PAO TMK, a Russiancompany and manufacturer of steel pipe, 100% of the shares of its wholly owned U.S. subsidiary IPSCOTubulars, Inc., for US$1,209 million, on a cash-free, debt-free basis, which includes US$270 million ofworking 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, withan annual production capacity of 450,000 metric tons of steel bars, 400,000 metric tons of seamless pipeand 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 barproduction facility at Koppel, PA, complement its seamless production in Bay City, TX with a secondfacility in Ambridge, PA, and bring additional welded, heat treatment and finishing facilities to betterserve customers throughout the country.
Paolo Rocca, Chairman and CEO of Tenaris, commented: “Over the past 15 years, we have beenexpanding our manufacturing presence and positioning in the U.S. market. This acquisition would marka 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-lookingstatements are based on management’s current views and assumptions and involve known and unknownrisks that could cause actual results, performance or events to differ materially from those expressed orimplied by those statements.
Tenaris is a leading global supplier of steel tubes and related services for the world’s energy industry andcertain other industrial applications.
Tenaris had announced in the first quarter of 2019 two other actions of growing its presence in Saudi Arabia and Russia: