TPi January 2012

business & market news

DeepFlex completes significant funding DeepFlex, Inc, a manufacturer of all- composite flexible pipe used in chal- lenging subsea oil and gas production environments, has closed a funding agreementandcompletedrecapitalisation to simplify its capital structure. AEM Capital of Rio de Janeiro, Brazil is the lead investor, with funding from Promon International of the Promon Group of Brazil, and Energy Ventures, Klaveness Invest AS and Mobelmagasinet Tvedt, all based in Norway. significant milestone in the history of DeepFlex. Their vast experience in the Brazilian upstream oil and gas sector as well as their relationships in the business community in Brazil will certainly help propel DeepFlex to the next level.

Antonio Muller, managing partner of AEM Capital, said, “We are excited about the opportunity to assist DeepFlex in becoming a significant force in the flexible pipe market, not only in Brazil, but around the world. “DeepFlex’s current flexible pipe technology is impressive and the technological developments already underway will further distinguish the company’s products.”

“More than half of the world’s subsea flexible pipe market is offshore Brazil, so it is logical to have a majority of our board and a new lead investor from Brazil. Our plans include forming a Brazilian company, adding staff in-country and preparing for a manufacturing facility in Brazil.”

DeepFlex, Inc – USA info@deepflex.com www.deepflex.com

Mike Kearney, president and CEO of DeepFlex, commented, “Having AEM Capital lead this financing is a

Prolamsa acquires ERW tubing supplier Prolamsa has acquired 100% of the shares of Aceros Cuatro Caminos, a Mexico City producer of ERW tubing and value-added products for Tier 1 and other automotive and OEM customers. held by the Prolamsa Group. The two companies will explore opportunities and synergies that can benefit the customers of both.

in Houston, Texas, to market and sell structural and mechanical tubing, value- added products and metal building components in the US and Canada. Prolamsa, Inc operates an ERW tubular manufacturing plant and a distribution centre in Laredo, Texas.

Prolamsa is a major steel tube and pipe producer in Latin America. It was founded in 1954 and has plants in Escobedo and Tepeji del Rio, Mexico. The company operates four distribution centres – Guadalajara, San Luis Potosi, and two in Mexico City.

The acquisition will strengthen Prolamsa’s presence in the central region of Mexico and increase its capabilities to serve the automotive industry. The name Aceros Cuatro Caminos will be retained, and it will be included in the family of companies currently

Prolamsa – Mexico ventas@prolamsa.com www.prolamsa.com Prolamsa Inc – USA sales@prolamsausa.com www.prolamsausa.com

In 1996 the company formed a subsidiary, Prolamsa, Inc, headquartered

Mueller enters into standstill agreement with Leucadia

Mueller Industries is a manufacturer of copper tube and fittings; brass and copper alloy rod, bar and shapes; aluminium and brass forgings; aluminium and copper impact extrusions; plastic fittings and valves; refrigeration valves and fittings; and fabricated tubular products. Its operations are located throughout the United States and in Canada, Mexico, UK and China.

The agreement also restricts sales by Leucadia to counterparties who hold, or after giving effect to a sale would hold, in excess of 4.9% of the company’s common stock. Additionally, the agreement prevents Leucadia from engaging in certain corporate actions without the express permission of the members of the board of directors not appointed by Leucadia. The standstill agreement is set to terminate in September 2013, unless otherwise terminated earlier in accordance with the agreement.

Mueller Industries, Inc has entered into a standstill agreement with Leucadia National Corporation whereby Leucadia agreed to own no more than 27.5% of Mueller’s outstanding common stock, and Leucadia is entitled to appoint up to two directors to the company’s board of directors. Pursuant to the standstill agreement Leucadia nominated, and the board of directors unanimously elected, Ian M Cumming, chairman of Leucadia, and Joseph S Steinberg, president of Leucadia, to serve on Mueller’s board of directors.

Mueller Industries, Inc – USA www.muellerindustries.com

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Tube Products International January 2012

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