United States Steel Corporation and Lone Star Technologies, Inc. announced that they have entered into a definitive agreement under which U.S. Steel will acquire Lone Star, a leading manufacturer of welded oilfield tubular goods, for approximately $2.1 billion. The agreement was unanimously approved by the boards of directors of both companies. The deal is expected to close in the second or third quarter of 2007.
U.S. Steel expects that the acquisition of Lone Star, which is the parent company of Lone Star Steel and has plants in Texas, Oklahoma, Arkansas, Alabama, Mexico and Thailand, will create North America’s largest tubular products producer. The transaction will broaden U.S. Steel’s energy product offerings by joining its predominantly seamless tubular business with Lone Star’s complementary welded tubular business. Following the transaction, U.S. Steel will have annual North American tubular manufacturing capability of approximately 2.8 million tons.