Tenaris to Buy IPSCO Tubulars for $1.2B

Steel pipe manufacturer Tenaris S.A. has entered into a definitive agreement to acquire IPSCO Tubulars, Inc. for $1.2 billion, the company announced March 22.

IPSCO, a U.S. subsidiary of Russia-based steel pipe manufacturer PAO TMK, has an annual production capacity of 450,000 metric tons of steel bars; 400,000 metric tons of seamless pipe and 1 million metric tons of welded pipe. It also has production facilities spread throughout the United States.

“Over the past 15 years, we have been expanding our manufacturing presence and positioning in the U.S. market,” Tenaris CEO Paolo Rocca said in a company statement. “This acquisition would mark a further step in our journey as a domestic producer and supplier to the U.S. oil and gas industry.”

The acquisition will add a first U.S. steel bar production facility at Koppel, Pa., and complement its seamless production in Bay City, Texas, with a second facility in Ambridge, Pa.