Luxembourg-based steel tube producer Tenaris SA is set to purchase Benteler Steel & Tube Manufacturing Corp. from Benteler North America Corp. in a deal valued at $460 million.
Benteler Steel & Tube is a seamless pipe producer with production facility in Shreveport, La., that has annual capacity of 400,000 metric tons.
The acquisition, which is subject to regulatory approvals, will further Tenaris’s manufacturing presence in the US market, the company said in a press release. The transaction is scheduled to be completed in the fourth quarter of 2022.
Prior to this acquisition, Tenaris operated eight manufacturing facilities and four pipe service centers in the US with 2 million tons of production capacity.
In Q1 this year, Tenaris posted net income of $503 million on sales of $2.367 billion. Globally, the company has steel pipe manufacturing capacities of 4.7 million tons of seamless pipe and 3.2 million tons of welded pipe (not including the Benteler acquisition).
By Laura Miller, Laura@SteelMarketUpdate.com
Laura MillerRead more from Laura Miller
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