Tenaris to Sell Hydril Pressure Control Business to GE
LUXEMBOURG--(Marketwire - January 28, 2008) - Tenaris S.A. (NYSE: TS)
(BAE: TS) (MXSE: TS) (MILAN: TEN) announced today that it has entered
into an agreement with General Electric Company (GE), pursuant to
which it will sell the pressure control business acquired as part of
the Hydril transaction to GE for an amount equivalent on a debt-free
basis to US$1,115 million. The agreement is subject to governmental
and regulatory approvals and other customary conditions and is
expected to close during the second quarter.
Since its acquisition of Hydril Company in May 2007, Tenaris has
integrated Hydril's premium connection business into its core tubular
business and managed the Hydril pressure control business separately.
The Hydril pressure control business manufactures, sells and services
pressure control products and systems that control and contain fluid
and gas pressure during drilling, completion and maintenance of oil
and gas wells in harsh environments.
Paolo Rocca, Chairman and CEO of Tenaris, commented, "The Hydril
pressure control business is one with excellent technology, an
impressive team and solid prospects but has limited synergies with
our core tubular business. We believe that its opportunities will be
enhanced within GE, as part of its growing oil and gas business, and
that this transaction is in the best interests of its employees and
customers and our shareholders."
Tenaris is a leading global supplier of steel tubes and related
services for the world's energy industry and certain other industrial
applications.
Some of the statements contained in this press release are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements are
based on management's current views and assumptions and involve known
and unknown risks that could cause actual results, performance or
events to differ materially from those expressed or implied by those
statements. These risks include, but are not limited to, risks about
the expected timing, effects and completion of this proposed
divestment.
Contact:
Nigel Worsnop
Tenaris
1-888 300 5432
www.tenaris.com