Maverick expects to sell assets of HSS business

Maverick expects to sell assets of HSS business

Maverick Tube Corporation has announced that it intends to sell specific assets associated with its hollow structural sections (HSS) product line to Atlas Tube, Inc. On May 11, 2005, Maverick executed a letter of intent to sell its HSS inventory and US/Canadian customer lists to Atlas for a cash payment at closing. The transaction, based on the book value of Maverick’s inventories and the premium on the sale of the business, would bring Maverick an additional $50-55 million of liquidity. The details of the agreement state that Maverick will continue to produce HSS products for Atlas for a period of time after closing. The two companies will also be bound by a non-competition clause for a certain period of time. C. Robert Bunch, Maverick’s Chairman and CEO, said of the sale, “The proposed combination satisfies the strategic objectives of both companies.” Atlas is the leading HSS producer in the North America.