Jindal Tubular USA LLC Acquires the Assets of PSL North America LLC

Jindal SAW expands presence in North America through the acquisition of a premier global manufacturer of water and natural gas transmission pipe company

Jindal Tubular USA LLC (“Jindal Tubular”), a step down subsidiary of Jindal SAW and one of the largest global manufacturers of large diameter steel pipe, today announced the  acquisition of the assets of PSL North America LLC (the “Company” or “PSL NA”) 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 U.S. market.

PSL NA is a premier manufacturer of large diameter, 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 375,000 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 of Jindal SAW, expressed his satisfaction regarding the fruitful culmination of the 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 U.S. market instantly,” he averred.

“This acquisition is an important milestone, not only for Jindal SAW Ltd. but for all stakeholders,” commented Neeraj Kumar, Group CEO & Whole-time Director, Jindal SAW Ltd. “PSL NA’s modern and advanced manufacturing technology complements our existing operations in the U.S., further strengthening our asset base and production capacity. We are pleased to invite the members of PSL NA into the Jindal family and to participate in our growth story.”

“PSL North America LLC brings remarkable experience and expertise in the manufacturing of large diameter, high pressure steel pipe utilizing state-of-the-art 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 will 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 of PSL NA.

Jindal Tubular acquired select assets of PSL NA through a section 363 sale approved by 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 Melzer and Eric Williams of Duff & Phelps Securities, LLC and legal counsel from John Knight and Paul Heath of Richards, Layton & Finger, P.A. Duff & Phelps acted as PSL NA’s restructuring and M&A advisor and initiated, structured and negotiated the sale of substantially all of the assets of the business to Jindal Tubular USA LLC through a §363 sale process.

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 large diameter 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.