Luxembourg-based steel tubes provider Tenaris SA said Jan. 2 that it has completed the acquisition of IPSCO Tubulars Inc. from PAO TMK, which was announced in March 2019.
Following contractual adjustments, Tenaris acquired the Texas-based manufacturer of steel pipe for a final cash payment of $1.1 billion, including approximately $220 million in working capital, according to a Jan. 2 news release from Tenaris.
Tenaris will consolidate IPSCO's balance sheet and results of operations in its consolidated financial statements beginning in the first quarter of 2020.
As per a six-year master distribution agreement, beginning on Jan. 2, Tenaris will be the exclusive distributor of TMK's oil country tubular goods and line pipe products in the United States and Canada.
Tenaris said IPSCO's facilities, located mainly in the Midwestern and Northeastern regions of the U.S., complement its existing U.S. industrial and service network sited primarily in the South.
IPSCO's steel shop in Koppel, Pa., is Tenaris's first in the United States, providing vertical integration through domestic production of a relevant part of its steel bar needs. Its Ambridge, Pa., mill adds a second seamless manufacturing facility and complements Tenaris's seamless plant in Bay City, Texas, the company said.