RNS Number : 6377W
13 June 2008
June 13, 2008 Press Release
TMK Completes Transaction to Acquire IPSCO U.S. Assets
TMK, one of the world's largest oil and gas pipe producers, today announces that it completed the acquisition of the US companies and assets of IPSCO Tubular's business from SSAB Svenkst Stal AB under a back-to-back transaction with
Evraz S.A. (Evraz).
TMK acquired 100% of share capital in IPSCO Tubulars Inc. and 51% of share capital in NS Group Inc. for approximately 1.25 billion USD. TMK and Evraz have also entered into a call / put option for the remaining 49% of NS Group Inc. which may be exercised for approximately $0.5 billion subject to certain adjustments.
The purchase of IPSCO Tubular's US assets is an essential part of TMK's strategy to expand the company's global presence and increase offer of high-tech, premium-class, tubular goods for the oil and gas industry.
TMK acquired ten production sites in seven States with combined pipe production capacity over one million tonnes, including about 300 thousand tonnes of seamless pipes and in-house steelmaking capacity of 450 thousand tonnes of billets per year. In addition to pipe rolling and steelmaking capacity, the acquired assets boast 450 thousand tonnes of annual heat treatment capacity, about 750 thousand tonnes of threading capacity and up to 240 thousand joints of Premium connection capacity.
'We are very pleased with the acquisition of IPSCO Tubular's US assets that became TMK's largest acquisition to date. The consolidation of the new assets into TMK will considerably expand the Company's product mix with additional production and finishing capacity of high-technology tubulars in the world's largest oil and gas pipe market', said TMK Chairman, Dmitriy Pumpyanskiy.
Founded in 2001, TMK (LSE: TMKS) is the largest pipe producer in Russia and one of the three global market leaders.
In 2007, TMK shipped over 3 million tonnes of pipes. TMK supplies to companies in more than 60 countries.
TMK production facilities are located in Russia and Romania:
For further information please contact:
TMK PR Department: TMK IR Department
Alexey Sotskov Alexei Ratnikov
Tel: +7 495 775 7600 ext. 2125 Tel: +7 495 775 7600 ext. 2078
Email: PR@tmk-group.com Email: IR@tmk-group.com
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