TPi January 2011

news business & market Ameron to Sell TAMCO ownership

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; 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.

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 www.ameron.com 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.

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.

Steady sales spur seamless tube and pipe manufacturer forward

316 Stainless Steel Fittings Advanced Fluid Specialists in Stainless Steel Stainless Steel stockholder Specialists in Stainless Steel Fittings, Flanges, Tubes & Valves 316 Stainless Steel Fittings

ADVANCED FLUID TECHNOLOGIES 35 Finchwell Handsworth Sheffield S139AS Tel:+44 (0)1142448560 Fax:+44 (0)1142448561 Email: info@advancedfluid.co.uk www.advancedfluid.co.uk

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 www.advanced uid.co.uk

MST – USA info@mstube.com www.mstube.com

10

Tube Products International January 2011

www.read-tpi.com

Made with