The transaction is subject to regulatory approvals including approval by U.S. antitrust regulators and other customary conditions.
SEATTLE (Scrap Monster): Luxembourg-based Tenaris S.A has reached a definitive agreement to acquire IPSCO Tubulars, Inc. for a sum of $1.2 billion on a cash-free debt-free basis. The agreement was signed on March 22. The transaction is subject to regulatory approvals including approval by U.S. antitrust regulators and other customary conditions. Incidentally, IPSCO is the U.S. subsidiary of Russia-based steel pipe manufacturer PAO TMK.
Paolo Rocca, CEO, Tenaris said that the company has been constantly expanding its manufacturing presence and positioning in the U.S. market over the past 15 years. The acquisition of IPSCO would mark a further step in its journey to become a leading domestic producer and supplier to the U.S. oil and gas industry. Further, it will help the company to extend its product offering and expand its service footprint, Rocca added.
IPSCO Tubulars has 10 production facilities within the U.S. and one in Canada. This includes the Harmony Township plant, located along Route 65, which produces seamless pipe and tubulars and the Koppel plant produces seamless oil-country tubular goods, drill pipe and line pipes mainly for oil and natural gas industry. The annual production capacity of the company is estimated at around 450,000 metric tons of steel bars, 400,000 metric tons of seamless pipe and 1 million metric tons of welded pipe.
Member