Tenaris has announced on October 13, 2021 that it has entered into a definitive agreement with MKK USA Inc., a subsidiary of Maruichi Steel Tube Ltd of Japan, for the sale of its structural pipe business in the United States via the transfer of 100% ownership of its wholly owned subsidiary Geneva Structural Tubes LLC, for US$ 15 million on a cash free, debt free basis, adjusted for working capital variation at closing.
The business manufactures and sells square and rectangular welded steel pipe for structural applications from its plant located in Geneva, NE. The transaction is expected to close by October 31, 2021.
“The sale of our structural pipe unit in Geneva NE, despite its excellent performance to date, is in line with our long-term strategy of focusing on our core businesses, serving the domestic market with pipes and innovative services,” said Luca Zanotti, Tenaris President, USA. “We are confident that Maruichi will ensure continued service and value to the company’s customer base.”