The Acquisition is expected to close on April 4, 2017, or such later date which may be agreed, with an outside date of April 30, 2017. The consideration is cash but immaterial, and further particulars of the Acquisition are available in the Corporations Material Change Report filed today. The Acquisition supports Hydukes stated strategy to expand beyond the fabrication and support of drilling and well servicing rigs and related oilfield services equipment to become a diversified designer, fabricator and manufacturer of equipment required for the drilling, completion, production and maintenance of upstream oil, natural gas and natural gas liquids.
Completion of the Acquisition is subject to the fulfillment of certain conditions typical to a transaction of this nature.
Patrick F. Ross, Director and Chief Executive Officer of the Corporation, is also a director and, through his wholly-owned corporation, 1017348 Alberta Ltd.1017348, a shareholder of Avalanche, and therefore, the Acquisition constitutes a Related Party Transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions MI 61-101 insofar as it relates to Mr. Ross only. 1017348 owns 40 Class A Voting Non-Participating and 40 Class C Non-Voting Common Shares of Avalanche. On closing of the Acquisition, 1017348 will be paid an aggregate of $75,000 for its Avalanche Shares. Subsequent to closing, the purchase price for the Avalanche Shares may be adjusted upward or downward based on a reconciliation of the net book value of the Avalanche assets. Based on information currently in the Corporations possession, any upward increase in the purchase price is not anticipated to exceed 10% of the aggregate amount that 1017348 was paid for its Avalanche Shares on closing. There are no other related parties in connection with the Acquisition.
Outokumpu announces enhancement of stainless bar production in its facilities in in Richburg, South Carolina, USA. New capabilities include a new coil-to-bar line to cover bar sizes from 0.600” to 1.250” inches and full reinforcement bar capabilities. The new lines enable Outokumpu to better serve its key end-customer segments including automotive, aerospace, oil & gas, construction and chemical processing in the North American market. The investment increases Outokumpu’s stainless bar production capacity by more than 15,000 tonnes annually.
Says Bob Beatty, head of the Outokumpu Stainless Bar, USA: “The new investment allows us to expand our capacity in the area of coil-to-bar peeling where we have been capacity constrained. The line utilizes hot-rolled coil bar feedstock which is straightened, peeled, chamfered and polished to finished bars. This new capacity helps us to expand our business in key growth markets including the important automotive segment where we have a strong position.”
Outokumpu serves the North American market through its key service center partners. The company has a strong reputation in the market as a premium producer of high performance bars with unique knowhow in stainless steel applications and material performance.
Outokumpu has over a century of experience in creating efficient, long-lasting, and recyclable stainless steels. Our global offering includes quality-critical long products for equipment, buildings and infrastructure projects. Our Long Products sites are located in the US, the UK, and Sweden and are known for their high quality products, flexibility, and world-class delivery performance. Read more about Outokumpu Long Products’ offering at www.outokumpu.com/longproducts.
For more information:
Corporate communications, tel. +358 9 421 3840
Outokumpu is a global leader in stainless steel. We create advanced materials that are efficient, long lasting and recyclable – thus building a world that lasts forever. Stainless steel, invented a century ago, is an ideal material to create lasting solutions in demanding applications from cutlery to bridges, energy and medical equipment: it is 100% recyclable, corrosion-resistant, maintenance-free, durable and hygienic. Outokumpu employs some 10,000 professionals in more than 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com , outokumpu.com/stainless-news , choosestainless.outokumpu.com