Acquisition · Steel pipe and tube
Maruichi Steel Tube buys Nebraska pipe plant from Tenaris for about $24 million
- Buyer
- Maruichi Steel Tube (via MKK USA) (Osaka)
- Target
- Geneva Structural Tubes, Geneva, Nebraska
- Value
- About $24M (about ¥2.73B)
- Status
- Completed November 1, 2021.
- Date
- 2021-10-14
Maruichi Steel Tube's US unit bought Geneva Structural Tubes, which makes square and rectangular welded steel tube for construction in Geneva, Nebraska, from steel pipe group Tenaris. The price was $15 million plus cash and working-capital adjustments, about $24 million at closing.
Why it matters
Maruichi already made pipe in Los Angeles, Portland and Chicago. A fourth plant in the Midwest lets it serve customers there faster.
About Geneva
Geneva Structural Tubes had sales of about ¥2.51 billion and an operating profit of about ¥215 million. Tenaris said it sold 100% of its US structural pipe business for $24.1 million on a cash-free, debt-free basis, before final working capital adjustments.
A shorter route
Before the deal, Maruichi served Midwest customers from its Chicago plant. With Geneva it now has four US plants and can deliver to the region faster.
Sources
Kakehashi M&A News home
