news
business & market
10
Tube Products International January 2011
316
Stainless Steel Fittings
35 Finchwell Road, Handsworth
She eld S13 9AS, UK
Tel: +44 (0)114 244 8560
Fax: +44 (0)114 244 8561
Email: info@advanced uid.co.uk
uid.co.uk
316
Stainless Steel Fittings
ADVANCED FLUID TECHNOLOGIES
35 Finchwell
Handsworth
Sheffield
S139AS
Tel:+44 (0)1142448560
Fax:+44 (0)1142448561
Email:
Advanced Fluid Specialists
in Stainless Steel
Stainless Steel stockholder
Specialists in Stainless Steel Fittings,
Flanges, Tubes & Valves
Ameron to
Sell TAMCO
ownership
Ameron International Corporation has
announced the signing of a definitive
agreement to sell its 50% ownership of
TAMCO, an unconsolidated affiliate, to
Gerdau Ameristeel US Inc for $82.5mn
in cash, before transaction costs and
working capital adjustments.
TAMCO’s other two shareholders,
Mitsui & Co (USA), Inc and Tokyo Steel
Manufacturing Co, Ltd also agreed
to sell the remaining 50% interest in
TAMCO to Gerdau for an additional
$82.5mn.
TAMCO is a leading mini-mill that
manufactures steel rebar primarily
for markets in California, Arizona and
Nevada. Located inRanchoCucamonga,
California, TAMCO is one of the largest
rebar mills in the western USA.
James S Marlen, Ameron’s chairman,
president and chief executive officer,
stated, “Ameron began evaluating the
strategic alternatives for TAMCO in
late 2008 due to the long-term demand
forecasted for the steel rebar market
in the west and, importantly, the shift
in competitive dynamics that occurred
in the past few years. We concluded
that the potential of TAMCO would be
more fully realised under the ownership
of a full-line, vertically-integrated steel
company such as Gerdau.
“Ameron began divestiture discussions
with leading strategic buyers in 2009 and
engaged [investment banker] Houlihan
Lokey once it was determined that there
was sufficient interest to conduct an
auction.”
Mr Marlen concluded, “Ameron has
had a very successful investment in
TAMCO for many years, and we have
enjoyed a rewarding relationship with
TAMCO’s other shareholders – Mitsui
and Tokyo Steel. I thank them for their
support over the years. Overall, from a
strategic standpoint, the divestiture of
TAMCO makes good business sense;
from a financial standpoint, we were
successful in executing a transaction
that should be favourable for both the
sellers and the buyer.
“Going forward, we will concentrate
on growing the company in closely-
related businesses, principally core pipe
systems for the transmission of water
and corrosive fluids and gases and
related infrastructure products.”
Ameron is a producer of water transmis-
sion lines and fabricated steel products,
such as wind towers; fibreglass-
composite pipe for transporting oil,
chemicals and corrosive fluids and
specialised materials; and products
used in infrastructure projects.
The company’s businesses operate in
North America, South America, Europe
and Asia. The company also has partial
ownership in several unconsolidated
affiliates in the USA and the Middle
East.
Ameron International Corporation
–
USA
MST Seamless Tube & Pipe, based in
South Lyon, Michigan, has increased its
workforce to near-record levels after a
three-month period of strong sales.
The manufacturer of seamless cold-
drawn pipe and tube has had a recent
hiring surge that brings its total number
of hourly and salaried employees up to
250, near where it was before the state’s
economic downturn.
A decrease in sales volume nearly
two years ago necessitated a slight
downsizing.
As South Lyon’s largest non-
governmental employer, the downsizing
weighed heavily on MST’s executive
management, who immediately went to
work to minimise the impact. “Because
of the decreased sales, we have worked
diligently over the past year to manage
costs, and we’ve been successful
keeping profits in check,” said Les
Whitver, vice president of operations.
In 2010, MST experienced a 36%
increase in tonnage booked and has
seen a marked increase in distributor
and OEM sales of mechanical tubing.
Boiler and pressure tube sales have
been steady, with notable increases
in pipe sales. MST’s recent addition
of a UV coating line has positioned
the manufacturer to sell pipe into the
distribution market.
Current demand for pipe and tube
from MST is so strong, lead times for
products have been moved from four
weeks to seven or longer.
“The overall economic recovery has
helped fuel MST’s increased business
levels, but I believe a lot of the credit is
owed to our dedicated and determined
sales group,” said Ted Fairley, vice
president of sales and marketing.
MST
– USA
Steady sales spur seamless tube
and pipe manufacturer forward
