Tenaris to acquire Benteler Steel & Tube pipe manufacturing plant in Shreveport, Louisiana

Rhea-AI Summary

Tenaris S.A. has announced a definitive agreement to acquire Benteler Steel & Tube Manufacturing Corporation for US$460 million in a cash-free, debt-free transaction. This acquisition, which includes US$52 million of working capital, aims to bolster Tenaris's production capacity and local manufacturing presence in the U.S. market. The transaction is pending regulatory approvals and is expected to close in the fourth quarter of 2022. Benteler produces seamless steel pipe with an annual capacity of 400,000 metric tons at its Louisiana facility.

Positive

• Acquisition expands Tenaris's production capabilities and local manufacturing in the U.S.
• Benteler's facility adds a capacity of 400,000 metric tons of seamless steel pipe.

Negative

• Transaction subject to regulatory approvals, including antitrust scrutiny, which could delay closing.
• Financial impact of the acquisition may affect short-term cash flow.

LUXEMBOURG, July 07, 2022 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) announced today that it has entered into a definitive agreement to acquire from Benteler North America Corporation, a Benteler group company, 100% of the shares of Benteler Steel & Tube Manufacturing Corporation for an aggregate price of US$460 million, on a cash-free, debt-free basis. The acquisition will include US$52 million of working capital.

The transaction is subject to regulatory approvals, including approval by the U.S. antitrust authorities, consent by Louisiana Economic Development and other local entities, and other customary conditions. Closing is expected to occur during the fourth quarter of 2022.

Benteler Steel & Tube Manufacturing Corporation is a U.S. producer of seamless steel pipe, with an annual pipe rolling capacity of up to 400,000 metric tons at its production facility located in Shreveport, Louisiana. The acquisition would further expand Tenaris’s production range and local manufacturing presence in the U.S. market.

Some of the statements contained in this press release are "forward-looking statements". Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements.

Tenaris is a leading global supplier of steel tubes and related services for the world’s energy industry and certain other industrial applications.

Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com

FAQ

What is the purpose of Tenaris's acquisition of Benteler Steel & Tube Manufacturing Corporation?

The acquisition aims to expand Tenaris's production capabilities and strengthen its manufacturing presence in the U.S. market.

What is the value of the acquisition deal between Tenaris and Benteler?

The acquisition is valued at US$460 million on a cash-free, debt-free basis, including US$52 million of working capital.

When is Tenaris expected to close the acquisition of Benteler Steel & Tube?

The transaction is expected to close during the fourth quarter of 2022, subject to regulatory approvals.

What regulatory approvals are needed for the Tenaris acquisition?

The acquisition requires approval from U.S. antitrust authorities and consent from Louisiana Economic Development and local entities.

What production capacity does Benteler Steel & Tube Manufacturing Corporation have?

Benteler has an annual pipe rolling capacity of up to 400,000 metric tons at its Shreveport, Louisiana facility.