Tenaris has agreed to acquire 100% of the shares of US-based seamless steel pipe producer Benteler Steel & Tube Manufacturing, for an aggregate price of $460m.

The steel pipe producer will be acquired from a Benteler group company, Benteler North America, on a cash-free, debt-free basis, which includes $52m in working capital.

The acquisition forms part of Tenaris’ efforts to expand its manufacturing capabilities in the country.

Tenaris anticipates the transaction to expand its production capacity and local manufacturing presence in the North American country’s market.

Benteler Steel & Tube Manufacturing has a pipe rolling capacity of up to 400,000mtpa. It owns a production facility in Shreveport, Louisiana, US.

The deal is contingent on regulatory approvals, including US antitrust authorities’ approval, and consent by Louisiana Economic Development and other local entities, as well as other customary conditions.

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By GlobalData

It is planned to be closed during the fourth quarter of this year.

Tenaris is engaged in supplying steel tubes and related services for the energy industry and certain other industrial applications.

Recently, Petrobras selected Tenaris for a four-year contract for the supply of a comprehensive package of products and services for its flagship Buzios deepwater project.

Tenaris reported a surge in profits during its first quarter, with net sales growing 100% year-on-year and net income increasing 400%.