Ipso to buy tube maker NS Group
Steelmaker Ipsco Inc will buy steel tube maker NS Group, Inc for about $1.46 bn to strengthen its position as a producer of tubular products for the energy sector, the two companies said on Monday.
In a joint release, the companies said Ipsco will pay $66 a share in cash for NS Group, which represents a premium of 43% to the company’s closing share price on Friday.
The company is expected to have combined annual revenues exceeding $4 bn.
Ipsco, which will finance the deal through a combination of cash on hand and debt obtained under a fully committed bank credit facility, said the acquisition will boost its ’07 earnings per share before giving effect to synergies.
The deal is expected to close by year-end ’06. Shares of NS Group closed at $46.15 in New York on Friday, while shares of Ipsco closed at $93.20
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