TMK, one of the world’s largest oil and gas pipe producers, today announces that it completed the acquisition of the US companies and assets of IPSCO Tubular’s business from SSAB Svenkst Stal AB under a back-to-back transaction with Evraz S.A. (Evraz).

TMK acquired 100% of share capital in IPSCO Tubulars Inc. and 51% of share capital in NS Group Inc. for approximately US$1.25 billion. TMK and Evraz have also entered into a call/put option for the remaining 49% of NS Group Inc. which may be exercised for approximately US$0.5 billion subject to certain adjustments.

The purchase of IPSCO Tubular’s US assets is an essential part of TMK’s strategy to expand the company’s global presence and increase offer of high-tech, premium-class, tubular goods for the oil and gas industry.

TMK acquired ten production sites in seven states with combined pipe production capacity over 1 million tonnes, including about 300,000 tonnes of seamless pipes and in-house steelmaking capacity of 450,000 tonnes of billets per year. In addition to pipe rolling and steelmaking capacity, the acquired assets boast 450,000 tonnes of annual heat treatment capacity, about 750,000 tonnes of threading capacity and up to 240,000 joints of Premium connection capacity.

"We are very pleased with the acquisition of IPSCO Tubular’s US assets that became TMK’s largest acquisition to date. The consolidation of the new assets into TMK will considerably expand the Company’s product mix with additional production and finishing capacity of high-technology tubulars in the world’s largest oil and gas pipe market", said TMK Chairman, Dmitriy Pumpyanskiy.