Tenaris will consolidate IPSCO’s balance sheet and operational results in its financial statements, starting Q1 2020.
SEATTLE (Scrap Monster): Luxembourg-based Tenaris S.A announced that it has completed the acquisition of IPSCO Tubulars, Inc. from Russian steelmaker PAO TMK. With the $1.07 billion acquisition, Tenaris has now emerged as North America’s largest steel pipe manufacturer.
It must be noted that the deal was initially announced during the month of March last year. The transaction price was based on a cash-free and debt-free basis, inclusive of $220 million of working capital.
Commenting on the acquisition, Paolo Rocca, chairman and CEO of Tenaris noted that the acquisition of IPSCO marks a new chapter in Tenaris’ U.S. expansion and yet another miestone in the company’s history. The unmatched product range of the two companies together will offer better services to the U.S. oil and gas industry, Rocca added.
As part of the acquisition, Tenaris has added IPSCO’s Koppel, Pennsylvania steel shop, Ambridge, Pennsylvania seamless pipe manufacturing facilities as well as its other strategic facilities located in the Houston area, and in Arkansas, Ohio, Oklahoma, Iowa, Kentucky, Nevada and Canada to its fold. The addition of these facilities- 10 within the U.S. and one in Canada- will expand Tenaris’ geographical reach and product lines.
Tenaris will consolidate IPSCO’s balance sheet and operational results in its financial statements, starting Q1 2020.
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