Tenaris’ $1.209 Billion Acquisition of IPSCO Tubulars, Inc.

Mitrani Caballero & Ruiz Moreno, Sullivan & Cromwell and Latham & Watkins advised on the deal

Tenaris S.A. (NYSE, Buenos Aires and Mexico: TS and MTA Italy: TEN) announced today that it has entered into a definitive agreement to acquire from PAO TMK, a Russian company and manufacturer of steel pipe, 100% of the shares of its wholly owned U.S. subsidiary IPSCO Tubulars, Inc., for US$1,209 million, on a cash-free, debt-free basis, which includes US$270 million of working capital.

The transaction is subject to regulatory approvals, including approval by the U.S. antitrust authorities, and other customary conditions.

IPSCO Tubulars is a U.S. domestic producer of seamless and welded OCTG and line pipe products, with an annual production capacity of 450,000 metric tons of steel bars, 400,000 metric tons of seamless pipe and 1,000,000 metric tons of welded pipe, and production facilities spread throughout the country.

The acquisition would enhance Tenaris’s position and local manufacturing presence in the U.S. market, extending its product offering and expanding its service footprint. It would add a first U.S. steel bar production facility at Koppel, PA, complement its seamless production in Bay City, TX with a second facility in Ambridge, PA, and bring additional welded, heat treatment and finishing facilities to better serve customers throughout the country.

Mitrani Caballero & Ruiz Moreno advised Tenaris S.A. with Diego E. Parise (Picture), Juan Ignacio Soma, Lorenzo Gnecco, Felicitas de Achaval, Ignacio M. Berétèrbide, Aixa Sureda, Mariano Neme Agnesi, María Florencia García, María del Sol Dianti, María Luz Nuñez and Nicolás Mingrone.

In US, Sullivan & Cromwell advised Tenaris S.A. with Sergio J. Galvis, Scott B. Crofton, Ronald E. Creamer Jr., Matthew M. Friestedt, Steven L. Holley and Matthew J. Brenna.

Latham & Watkins advised PAO TMK and IPSCO Tubulars, Inc. with Ryan J. Maierson, John M. Greer, C. Timothy Fenn, Adam L. Kestenbaum, Joel H. Mack, Jason D. Cruise, Mikhail Turetsky, William M. McGlone, Jeffrey A. Tochner, Sydney M. Smith y Yulia Dementieva, Ryan J. Lynch, Patrick Sanford, Clayton Heery, Caroline Ellerbe, Jared Grimley, Nikhil Kumar, Joshua W. Marnitz and Rachelle Polsky.

Involved fees earner: Jason Cruise – Latham & Watkins; Yulia Dementieva – Latham & Watkins; Timothy Fenn – Latham & Watkins; John Greer – Latham & Watkins; Jared Grimley – Latham & Watkins; Clayton Heery – Latham & Watkins; Adam Kestenbaum – Latham & Watkins; Nikhil Kumar – Latham & Watkins; Ryan Lynch – Latham & Watkins; Joel Mack – Latham & Watkins; Ryan Maierson – Latham & Watkins; Joshua Marnitz – Latham & Watkins; William McGlone – Latham & Watkins; Caroline Robinson Ellerbe – Latham & Watkins; Patrick Sanford – Latham & Watkins; Sydney Smith – Latham & Watkins; Jeffrey Tochner – Latham & Watkins; Mikhail Turetsky – Latham & Watkins; Ignacio Bérèterbide – Mitrani Caballero & Ruiz Moreno; Felicitas de Achaval – Mitrani Caballero & Ruiz Moreno; Lorenzo Gnecco – Mitrani Caballero & Ruiz Moreno; Mariano Neme Agnesi – Mitrani Caballero & Ruiz Moreno; Diego Parise – Mitrani Caballero & Ruiz Moreno; Juan Ignacio Soma – Mitrani Caballero & Ruiz Moreno; Aixa Sureda – Mitrani Caballero & Ruiz Moreno; Ronald Creamer – Sullivan & Cromwell; Scott Crofton – Sullivan & Cromwell; Matthew Friestedt – Sullivan & Cromwell; Sergio Galvis – Sullivan & Cromwell; Steven Holley – Sullivan & Cromwell;

Law Firms: Latham & Watkins; Mitrani Caballero & Ruiz Moreno; Sullivan & Cromwell;

Clients: IPSCO Tubulars, Inc.; PAO TMK ; Tenaris;

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Author: Ambrogio Visconti.