Tenaris SA has completed the acquisition of Ipsco Tubulars from PAO TMK. The acquisition expands Tenaris’ geographical reach in the North American oil and gas industry.
US-based steelmaker Tenaris SA has completed the acquisition of Ipsco Tubulars from Russian PAO TMK. Tenaris bought 100pc shares of Ipsco Tubulars Inc, according to agreement signed on March 22, 2019, at a transaction price of US$ 1,209 million on an aggregate, cash-free, debt-free basis, which included $270mn of working capital. Tenaris is likely to consolidate Ipsco’s operations into its financial statements in the first quarter of 2020.
Ipsco acquisition aids Tenaris in serving the US oil and gas industry by extending its geographic reach in North America and expanding its product range. Tenaris’ existing industrial and service network is in the southern part of the US and Ipsco’s facilities are located mainly in the mid-western and northeastern regions of the country.
Ipsco’s steel shop in Koppel, Pennsylvania provides vertical integration for its steel bar facility, while its Ambridge, Pennsylvania mill complements Tenaris’ plant in Bay City, Texas.