Jindal Tubular USA LLC acquires the assets of PSL NORTH AMERICA LLC
BAY ST. LOUIS, MS- AUGUST 25, 2014 - Jindal Tubular USA LLC ("Jindal Tubular"), a SPV of Jindal SAW one of the largest global manufacturers of SAW Pipes steel pipe, today announced the acquisition of the assets of PSL North America LLC (the "Company" or "PSLNA") for $104 million. Belonging to O.P. Jindal Group one of India's largest business conglomerates with interests spanning the steel, mining, power, industrial gases and ports verticals Jindal SAW is set to service the US market.
PSLNA is a premier manufacturer of SAW Pipes, high pressure steel pipe utilizing state-of-the-art helical submerged arc welding ("HSAW") technology. Located in Bay St. Louis, MS, the Company's manufacturing and coating plant is one of the most modern and technologically advanced in the world. The plant is capable of producing over 300,000 tons of pipe per year with diameters ranging from 18" to 120" and lengths up to 80'. The Company's pipes are used primarily for natural gas, petroleum and water transmission lines and construction pilings.
Commenting on the acquisition P R Jindal Chairman, expressed his satisfaction on the fruitful culmination of a court controlled process. "This new acquisition is an expression of Jindal SAW's expansive business approach that will extend an added advantage to tap into the wide US market insistently." He averred.
"This acquisition is an important milestone, not only for Jindal SAW Ltd. but for all stakeholders. PSLNA's modern and advanced manufacturing technology complements our existing operations in the US, further strengthening our asset base and production capacity. We are pleased to invite the members of PSL NA in the Jindal family and participate in our growth story."
- Mr. Neeraj Kumar, Group CEO & Whole-time Director, Jindal SAW Ltd.
PSL North America LLC brings remarkable experience and expertise in the manufacturing of SAW Pipes high pressure steel pipe utilizing state-of-the-art helical submerged arc welding ("HSAW") technology. We look forward to teaming up with Jindal SAW as we diversify our product line and continue to leverage our capabilities to be able to deliver better services to our customers. Jindal SAW is an undisputed leader in the sector and we are confident that the company would help us take our business to the next level of excellence for our customers, suppliers and employees," said Richard D. Gilstrap, Jr., Chief Executive Officer."
Jindal Tubular acquired all of the assets of PSL NA through a Section 363 sale held in the United States Bankruptcy Court for the District of Delaware. Chris Schaeper and Ira Herman of Thompson & Knight LLP served as legal counsel to Jindal Tubular in the transaction. The sellers received financial advice from Lisa Neimark, Jon Melzerand Eric Williams of Duff & Phelps Securities, LLCand legal counsel from John Knight and Paul Heath of Richards, Layton & Finger, P.A.
About Jindal Tubular USA LLC:Jindal Tubular is part of the $18 billion O.P. Jindal Group and the U.S. division of Jindal SAW Ltd., which is one of the largest global manufacturers and suppliers of steel and iron and pipe products. Jindal SAW's principal products include SAW Pipes submerged arc pipes and spiral pipes for the energy transportation sector; carbon, alloy, and stainless steel seamless pipes and tubes for use in industrial applications; and ductile iron pipes for water and wastewater transportation. For the fiscal year ending March 31, 2014, Jindal SAW reported revenues of $1.1 billion.
