Tenaris S.A. has entered into an agreement to acquire from PAO TMK, a Russian manufacturer of steel pipe, 100 per cent of the shares of its wholly owned US subsidiary Ipsco Tubulars, for $1.209 billion, on a cash-free, debt-free basis.

The purchase price includes $270 million 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 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.

Paolo Rocca, chairman and CEO of Tenaris, commented: “Over the past 15 years, we have been expanding our manufacturing presence and positioning in the US market. This acquisition would mark a further step in our journey as a domestic producer and supplier to the US oil and gas industry.”

Tenaris is a leading global supplier of steel tubes and related services for the world’s energy industry and certain other industrial applications.

Tenaris had announced in the first quarter of 2019 two other actions of growing its presence in Saudi Arabia and Russia. – TradeArabia News Service