According to a news release issued by IPSCO, NS Group, which had sales of $677 million for the 12 months ending June 30, 2006, is being acquired for cash at the price of $66 per share. Following the transaction, the combined company is expected to have combined annual revenues exceeding $4 billion.
“The acquisition will strengthen IPSCO’s position as a leading North American producer of tubular products for the energy sector, while also maintaining its position as the leading North American supplier of steel plate products,” the company’s news release states.
Says David Sutherland, IPSCO’s president and CEO, “This transaction represents a compelling strategic opportunity for IPSCO to become the leading North American supplier to the robust oil and natural gas sector by significantly expanding our pipe product offering and production capacity, as well as our geographic footprint.”
Adds René J. Robichaud, president and CEO of NS Group, “We believe the transaction with IPSCO serves the best interests of our shareholders, providing them with significant immediate value. The combination of IPSCO and NS Group will provide our employees an opportunity to be part of a larger enterprise. IPSCO has indicated that it is their intent to build on our exceptional platform and continue to grow the business over the long term.”
The transaction, which is expected to close by year-end 2006, is subject to approval of NS Group's shareholders and other customary closing conditions, including regulatory approvals.
IPSCO operates steel mills at three locations and pipe mills at six locations in the