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Tenaris will acquire TMK IPSCO, the Russian parent company reported. Tenaris will acquire 100 percent of the shares of the tubular products manufacturer, headquartered in Houston. The purchase price is $1.2 billion, which includes $270 million of working capital.

Tenaris executives claim the acquisition would enhance the company's position and local manufacturing presence in the U.S. market, extending its product offering and expanding its service footprint. It would add a first U.S. steel bar production facility at Koppel, Pa., complement its seamless production in Bay City, Texas, with a second facility in Ambridge, Pa., and bring additional welded, heat treatment and finishing facilities to better serve customers throughout the country.

“Over the past 15 years, we have been expanding our manufacturing presence and positioning in the U.S. market. This acquisition would mark a further step in our journey as a domestic producer and supplier to the U.S. oil and gas industry," said Paolo Rocca, chairman and CEO of Tenaris.

“TMK board and management are pleased with this transaction. It is in line with our strategy, which underlines, among other things, monetization of our international assets. The terms of this transaction would represent a significant enhancement of the value for all TMK shareholders,” said Dmitry Pumpyanskiy, chairman of TMK.

TMK IPSCO manufactures welded and seamless pipe and premium connections for the energy industry. It has facilities in Texas, Ohio, Arkansas, Iowa, Nebraska, Kentucky and Pennsylvania in the United States, plus another facility in Alberta. It also operates a coating facility at its Wilder, Ky., operation.