Maverick Tube completes HSS sale

Maverick Tube completes HSS sale

In its continuing strategy of freeing up capital to invest in its core business, Maverick Tube Corporation has received around $37.8 million in cash from Atlas Tube for the sale of some assets that produce hollow structural sections, according to a release issued by Maverick, June 30. Maverick’s managers further expect to generate liquidity of about $51 million from the sale together with proceeds derived from retained assets, principally trade receivables. The parties have also entered into a conversion agreement whereby Maverick will continue to produce HSS products for Atlas at Maverick's HSS mill in Hickman, Ark., for up to 18 months. "While we believe the sale of this product line is in the best interests of our shareholders, we recognize the impact on our employees affected by this decision. Maverick's president and COO James A. Cowan said. "The divestiture of the HSS product line gives us additional liquidity to continue to execute our growth strategy in our core businesses." Maverick Tube Corporation is a manufacturer of tubular products in the energy industry for exploration, production, and transmission, as well as industrial tubing products (steel electrical conduit, HSS, standard pipe, pipe piling, and mechanical tubing) used in various applications. Its corporate headquarters is in St. Louis, Mo.