Tenaris Buying Hydril

Tenaris (TS Quote) agreed to acquire Hydril (HYDL Quote) for $97 a share, or $2.16 billion, in cash.

Luxembourg-based Tenaris said the deal offers a 17% premium to shareholders of Houston-based Hydril, which makes premium connections and pressure control products for oil and gas drilling and production.

The deal marks the second recent foray into the U.S. for Tenaris. Last year it bought Dallas' Maverick Tube.

"This is another major step for Tenaris," said CEO Paolo Rocca. "Hydril is a company with an extraordinary track record and an outstanding know-how built over more than 70 years of serving the oil and gas industry. With Hydril, we will be able to offer our customers worldwide a full range of integral and coupled premium connection products for the industry's most demanding applications. The combined R&D and industrial know-how of the two companies will make a substantial contribution in the new frontiers for exploration and production. Hydril's strong brand and manufacturing capacity in North America will complete Tenaris's position in the region with a full product range and the combination will support further global expansion of Hydril's pressure control business, particularly in key areas like the Gulf of Mexico, Brazil and West Africa."