Tenaris to acquire IPSCO Tubulars from TMK

Tenaris S.A. recently announced that it has entered into a definitive agreement to acquire from PAO TMK, a Russian company, and manufacturer of steel pipe, 100% of the shares of its wholly-owned U.S. subsidiary IPSCO Tubulars, Inc., for USD 1,209M, on a cash-free, debt-free basis, which includes USD 270M of working capital.

The transaction is subject to regulatory approvals, including approval by the U.S. antitrust authorities, and other customary conditions.

IPSCO Tubulars is a U.S. 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 U.S. market, extending its product offering and expanding its service footprint. It would add a first U.S. 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.

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