CAXIAS DO SUL, Brazil, June 14 /PRNewswire-FirstCall/ -- Lupatech S.A. (Bovespa: LUPA3), through its subsidiary, Metalurgica Nova Americana Ltda. (MNA), has entered into a Share Purchase Agreement with the controlling shareholders of ITASA (Industria y Tecnologia en Aceros S.A.) involving the purchase of all of the latter's shares.
ITASA has an annual production capacity of 1,000 tonnes of cast steel (in finished parts) and employs the most up-to-date steel production technology. In 2005, it recorded gross revenues of close to US$ 5 million, 21% from exports. The Company is a supplier for the main valve and pump producers in the oil and gas sectors, and its assets amount to approximately US$ 2.5 million.
Lupatech will pay approximately US$ 9.0 million over three years. ITASA's controlling shareholders will also be entitled to 30% of the company's net income in the first year, 20% in the second year and 10% in the third year. This payment system will ensure the alignment of interests between Lupatech and ITASA's former controlling shareholders, who will continue serving as ITASA's officers.
Lupatech and ITASA have a commercial relationship that dates back 13 years, during which time ITASA was an important supplier for Esferomatic, an Argentinean oil valve company owned by Lupatech in Argentina between 1993 and 1998. In recent years, it has supplied MNA with high-quality cast steel.
About ITASA
Founded more than 20 years ago, ITASA is one of the most respected producers of cast valve bodies and components, as well as pump housings, for the Latin American oil industry. It is based in the city of Parana, in the province of Entre Rios, Argentina, and employs a workforce of 70.
About Lupatech S.A.
Lupatech S.A. has two business segments: Flow and Metal. In the Flow segment, it is the Brazilian leader in the production of industrial valves, mostly for the oil, gas and construction industries. In the Metal segment, it is among the global leaders in the development and production of auto parts.
For more details, please visit our site http://www.lupatech.com.br/ri .
