The Russian pipe producer TMK Group (TMK) has announced the completion of the acquisition of the US-based assets of IPSCO Tubular from SSAB Svenkst Stal AB under a back-to-back transaction with fellow Russian steelmaker Evraz Group.
Under the transaction, TMK has purchased a 100 percent stake in IPSCO Tubulars Inc. and a 51 percent stake in NS Group for approximately $1.25 billion. In addition, TMK and Evraz have entered into a call/put option for the remaining 49 percent stake in NS Group.
As a result of the transaction, TMK has acquired ten production sites in seven US states with a combined pipe production capacity of over one million mt per year, including 300,000 mt of seamless pipes and in-house production of 450,000 mt of billets per year.
The purchase of IPSCO Tubular's assets is in line with TMK's strategy to expand its presence globally.