SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: August 27, 1998 (Date of earliest event reported)
MAVERICK TUBE CORPORATION
(Exact name of registrant as specified in charter)
Delaware
1-10651 43-1455766
(State or other (Commission (IRS Employer jurisdiction of
File Number) Identification No.)
incorporation)
16401 Swingley Ridge Road, Chesterfield, MO 63017 (Address of
principal executive offices) (Zip Code)
Registrant's telephone number including area code: (314) 733-1600
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(Former name or former address, if changed since last report): Not Applicable
ITEM 5. OTHER EVENTS
On August 27, 1998, Maverick Tube Corporation (the "Company") announced the
signing of a definitive agreement providing for the acquisition of substantially
all of the assets of the cold draw facility of PMAC, Ltd., a Texas limited
partnership, located in West Mayfield, Pennsylvania, by Maverick Tube, L.P., a
wholly owned subsidiary of the Company.
Under the terms of the agreement, the Company will pay approximately $11.4
million for the assets of the facility. A substantial portion of the purchase
price will be derived from draw-downs on the Company's existing line of credit.
It is expected that the Company will utilize the facility fdraw over mandrel
seamless or ERW mechanical or pressure tubing.
The acquisition provides the Company with new product lines and is scheduled to
be completed by September 15, 1998.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit Description
99.1 Text of press release, dated August 27, 1998,
issued by Maverick Tube Corporation
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Maverick Tube Corporation
Date: August 27, 1998 /s/ Barry R. Pearl
-----------------------------------------------
Barry R. Pearl Vice President Finance and Administration
(Principal Financial and Accounting Officer)
EXHIBIT INDEX
Exhibit Description
99.1 Text of press release, dated August 27, 1998,
issued by Maverick Tube Corporation
Exhibit 99.1
FOR IMMEDIATE RELEASE August 27, 1998
For further information contact: Barry R. Pearl
Vice President Finance, CFO
MAVERICK TUBE CORPORATION
Acquires Assets to Enter Drawn Tubing Market
St. Louis, August 27, 1998 ---- Maverick Tube Corporation
(NASDAQ/NMS-MAVK) announced today that is has reached agreement with PMAC,
Ltd., of Houston, Texas to purchase those assets used in the production of cold
drawn tubular products at its facilities in Beaver Falls, PA. The purchase price
is in excess of $11 million and will be funded by additional borrowings from
current lenders.
The facility was originally built an operated by Babcock and Wilcox and
was closed during the 1980's. PMAC purchased the assets from Babcok and Wilcox
and began operating the cold drawn tubular assets during 1995. Currently
operating at modest rates, approximately 25 people are employed there. Maverick
plans to upgrade certain assets.
Gregg Eisenberg, Maverick's President and CEO stated "We are very
excited about this opportunity and had been studying the Drawn Over Mandrel
(DOM) business for some time. The market for these products has been growing and
we believe we can successfully enter the market given current customer
acceptance of our Structural Tubing (HSS) products. We believe that we can
attain similar market shares for DOM products as we have for our HSS products.
If we achieve this, DOM products can contribute substantially to Maverick
earnings within the next year There are several synergies between the operation
we are purchasing and our existing plants. We will supply up to 80% of the raw
materials for drawing from production at our current facilities in Arkansas and
Texas. Ultimately the volume going into DOM products will supply a nice base
load on our facilities there. There are other good fits between our industrial
business and the DOM business as well."
Eisenberg went on to say "We are also pleased with the facility we are
acquiring in Beaver Falls, PA. The equipment has some unique capabilities that
we believe we can exploit. In addition, the location is advantageous relative to
market demand and labor availability. The assistance provided by the State of
Pennsylvania was also critical to us in making our decision to operate these
assets in Beaver Falls. We look forward to being an important employer in the
area."
Maverick Tube Corporation is a St. Louis, Missouri, based manufacturer
of tubular products used in the energy industry in drilling, production and
surface transportation applications as well as industrial tubing products (HSS
and standard pipe) used in various industrial applications.
