Tenaris S.A. has entered into an agreement with General Electric Company (GE), pursuant to which it will sell the pressure control business acquired as part of the Hydril transaction to GE for an amount equivalent on a debt-free basis to US$1,115 million. The agreement is subject to governmental and regulatory approvals and other customary conditions and is expected to close during the second quarter.
Since its acquisition of Hydril Company in May 2007, Tenaris has integrated Hydril's premium connection business into its core tubular business and managed the Hydril pressure control business separately. The Hydril pressure control business manufactures, sells and services pressure control products and systems that control and contain fluid and gas pressure during drilling, completion and maintenance of oil and gas wells in harsh environments.
Paolo Rocca, Chairman and CEO of Tenaris, commented, "The Hydril pressure control business is one with excellent technology, an impressive team and solid prospects but has limited synergies with our core tubular business. We believe that its opportunities will be enhanced within GE, as part of its growing oil and gas business, and that this transaction is in the best interests of its employees and customers and our shareholders."
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