Tenaris continues string of US acquisitions

Latin American tubing giant Tenaris S.A. jointly announced with Houston, Texas-based Hydril Company Monday that the two companies have entered into a definitive merger agreement for Tenaris to acquire Hydril. Tenaris will finance the acquisition through a combination of cash on hand and debt, at a price of US$97 per share of Hydril's common stock, a premium of 17 percent to Hydril's closing share price as of February 9, 2007. The agreement is subject to clearance from US antitrust authorities as well as majority approval from Hydril's shareholders and other customary conditions. The deal is expected to close in the second quarter of 2007. Tenaris' chairman and CEO Paolo Rocca told the press, “Hydril”s strong brand and manufacturing capacity in North America will complete Tenaris's position in the region with a full product range and the combination will support further global expansion of Hydril's pressure control business, particularly in key areas like the Gulf of Mexico, Brazil and West Africa.” Chris Seaver, Hydril's chairman, president and CEO commented on the merger, “The breadth of products and services conveniently made available under this single brand will benefit our customers technologically and economically by providing a single source for OCTG products and premium connections.” Tenaris is a leading global manufacturer of tubular products for the oil and gas industry. Hydril is a leading North American manufacturer of premium connections and pressure control products for oil and gas drilling and production.