Maverick's South American Unit Ends Lone Star Alliance
TuboCaribe's OCTG products henceforth will be available in the United States through Maverick Tube. All other pipe products will be available through Advance Corp.'s Houston office. In Latin America, the Maverick lines will complement the TuboCaribe lines and be sold through offices in Quito, Caracas, Bogota and Cartagena.
As part of the termination agreement, TuboCaribe will deliver an agreed amount of OCTG to Lone Star without charge in this year's fourth quarter, and the TuboCaribe purchase price will be reduced by up to $5.5 million, which amount will be distributed to Maverick from the funds placed in escrow by Maverick at closing.
Also, Maverick Tube announced the successful completion of its previously announced sale of certain assets related to its hollow structural sections (HSS) product line to Atlas Tube. At closing, Maverick received cash of about $37.8 million.