Maverick Tube

Maverick Tube

June 29, 2005 08:47 ET

Maverick Tube Corporation Announces Termination of TuboCaribe's Strategic Alliance with Lone Star

ST. LOUIS--(CCNMatthews - Jun 29, 2005) -

Maverick Tube Corporation (NYSE:MVK) announced today that its recently acquired subsidiary, Tubos del Caribe, S.A. ("TuboCaribe"), and Lone Star Steel Company ("Lone Star"), a wholly-owned subsidiary of Lone Star Technologies, Inc. (NYSE:LSS), have terminated their strategic alliance agreement under which Lone Star marketed and sold in the United States oil country tubular goods (OCTG) produced by TuboCaribe. The strategic alliance was due to expire in October 2006. Effective immediately, TuboCaribe's OCTG products will be available in the United States through Maverick Tube Corporation. All other pipe products will be available through Advance Corporation'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.

Pursuant to the termination agreement, TuboCaribe will deliver an agreed amount of OCTG to Lone Star without charge in this year's fourth quarter. In connection with termination of the strategic alliance, 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.

Maverick Tube Corporation is a St. Louis, Missouri, based manufacturer of tubular products in the energy industry for exploration, production, and transmission, as well as industrial tubing products (steel electrical conduit, HSS, standard pipe, pipe piling, and mechanical tubing) used in various applications.

This news release may contain forward-looking information that is based on assumptions that are subject to numerous business risks, many of which are beyond the control of the Company. There is no assurance that such assumptions will prove to be accurate. Actual results may differ from these forward-looking statements due to numerous factors, including those described under "Risk Factors" and elsewhere in Maverick's Form 10-K for its year ended December 31, 2004.

Contact Information

  • Maverick Tube Corporation, St. Louis
    Richard Preckel, 636-733-1600