Posted: Oct 2, 2013 11:52 AM
Source: Associated Press
BATON ROUGE - Japan-based Sumitomo Corp. and Sumitomo Corp. of America Inc. will acquire Baton Rouge-based specialty pipemaker Edgen Group Inc. in a deal valued at $520 million.
Sumitomo said it will acquire all of Edgen's stock at $12 per share. The deal is expected to close by the end of the year.
With the assumption of Egen's debt included, the deal is worth $1.2 billion.
The deal allows Sumitomo to expand its distribution through every part of the oil and gas market, from exploration and production to refining and pipelines, said Kazuhiro Takeuchi, president and chief executive officer of Sumitomo Corp. of America.
The Advocate reports Edgen President and Chief Executive Officer Dan O'Leary will continue to lead Edgen's strategic growth initiatives.
Edgen has 660 employees in more than 35 locations in 18 countries.