business & market news
10
Tube Products International January 2012
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.
Mike Kearney, president and CEO
of DeepFlex, commented, “Having
AEM Capital lead this financing is a
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.
“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.”
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.”
DeepFlex, Inc
– USA
Mueller enters into standstill agreement
with Leucadia
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.
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 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.
Mueller Industries, Inc
– USA
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.
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
held by the Prolamsa Group. The two
companies will explore opportunities
and synergies that can benefit the
customers of both.
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.
In 1996 the company formed a
subsidiary, Prolamsa, Inc, headquartered
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
– Mexico
Prolamsa Inc
– USA
