Tenaris S.A. will acquire IPSCO Tubulars from its parent company, Russian steel pipe manufacturer PAO TMK, for $1.2bn. The deal was made on a cash-free, debt-free basis, which includes $270mn of working capital.
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 tonnes of steel bars, 400,000 metric tonnes of seamless pipe and 1,000,000 metric tonnes 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.
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.”