Canadian steel producer Ipsco Inc. has disclosed that it is buying NS Group Inc., a producer of steel pipes and tubes used in natural gas and oil fields, for about $1.46 billion in cash.
“The NS Group allows us to strengthen our position in the market in the US” said Ipsco CEO David Sutherland.
The deal, subject to customary closing conditions, is expected to be completed by the end of the year.
After the transaction is complete, the new company is expected to have a combined annual revenue of more than $4 billion.
Ipsco, based in Regina,
Canada, operates three steel mills and six
pipe mills in the US and
Canada. It has an annual steel-making capacity of 3.5 million tons.
The NS Group produces tube products used primarily in the drilling, exploration and transportation of oil and natural gas. It has 1,400 employees in four states: namely, Kentucky, Pennsylvania, Oklahoma and Texas.