Tubos Reunidos looks for acquisitions and JVs as part of its growth strategy, source says
Tubos Reunidos [MCE: TRG], the Spanish, listed seamless steel tubes maker, is looking for acquisitions and joint ventures as part of its 2014-2017 business plan, a company source said.
Any deals or JVs would have to help the company execute its new business plan, the source said. The main points of the plan are specializing in premium products, developing new products, increasing its regional presence and growing its services division, Almesa.
The company will study the acquisition of companies that complete its range of products, strengthen Almesa or help it enter target markets such as the US, the source said. In the US, Tubos Reunidos would be particularly interested in buying a company that specialises in finishing tubular products or a company that can offer value-added services to its clients, the source said.
Tubos Reunidos is also interesting in increasing its presence in Latin America, North Africa and the Middle East, the source said. The company could study buying a target or entering a JV with a local player, the source added.
The company has an in-house team to analyse markets and suggestions from advisors, the source said, adding that it would like to hear from advisors with more proposals.
Tubos Reunidos could also study commercial agreements with other tubular products makers, the source said.
Meanwhile, the company is not planning a rights issue, the source said. In case a big deal arises, it could finance it in the markets (with bonds or a bullet loan) or with a rights issue, the source added.
Although the company is not looking for a merger, possible opportunities must be analysed, the source said.
Tubos Reunidos hit EUR 42m in EBITDA and EUR 350m in revenues last year.
A spokesperson for the company declined to comment.
by Iñaki Miguel in Madrid
Source Proprietary Intelligence