IPSCO Tubulars Inc., which operates two Western Pennsylvania faciltiies, has been acquired by Tenaris S.A., a European supplier of steel tubes and related services, for $1.209 billion. The seller is PAO TMK, a Russian company and manufacturer of steel pipe.
“Over the past 15 years, we have been expanding our manufacturing presence and positioning in the U.S. market," Tenaris Chairman Paolo Rocca said in a statement. "This acquisition would mark a further step in our journey as a domestic producer and supplier to the U.S. oil and gas industry.”
Here are highlights of the deal:
- The deal is on a cash-free, debt-free basis and includes $270 million of working capital.
- IPSCO Tubulars is a U.S. domestic producer of seamless and welded OCTG and line pipe products.
- The deal includes two facilities near Pittsburgh: one in Koppel and one in Ambridge.
- IPSCO has 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 enhances Tenaris’ position and local manufacturing presence in the U.S. market, extending its product offering and expanding its service footprint.