MRC Global Makes Two International Acquisitions
12/13/2013 - MRC Global Inc. has acquired Stream AS in Norway and Flangefitt Stainless Ltd. in the U.K.
MRC Global Inc. has entered into an agreement to acquire privately held Stream AS for approximately US$260 million (Norwegian Kroner 1.60 billion) including the assumption of debt. Headquartered in Norway, Stream's 2013 revenues are estimated at US$273 million (Norwegian Kroner 1.68 billion). Stream is the leading pipe, valve and fittings (PVF) distributor and provider of flow control products, solutions and services to the offshore oil and gas industry on the Norwegian Continental Shelf (NCS), the world's largest offshore sector. The acquisition is expected to close in January 2014, subject to normal and customary closing conditions, and MRC Global expects to fund the acquisition of Stream through the use of MRC's existing credit facilities. The selling shareholders of Stream are HitecVision and Converto Capital.
MRC Global also announced that it has acquired Flangefitt Stainless Ltd. Flangefitt, headquartered in Warrington, England, with a location in Aberdeen, Scotland, is a leading pipe, flange and fitting (PFF) distributor to the oil and gas industry. Flangefitt's 2013 revenues are estimated to be approximately US$28 million and it will be operated as "MRC Flangefitt". MRC Global expects the acquisitions to be modestly accretive in 2014.
Andrew Lane, MRC Global chairman, president and chief executive officer, commented, "These acquisitions continue our multi-year international growth strategy, complement our previous international acquisitions and are expected to allow us to achieve over US$900 million in international segment revenues in 2014, with a target of over US$1.0 billion in 2015. The Stream acquisition provides MRC Global a platform for growth in offshore applications where our major customers have been very active. The acquisition of Flangefitt's PFF business complements our existing U.K. based, MRC Transmark valve business as well as the Stream Energy Piping business. We now have the full range of pipe, valves and fittings (PVF) to serve both the NCS and the U.K. Continental Shelf (UKCS) sectors as well as global projects with high-end alloy PFF requirements."
"We are very pleased to welcome Steinar Aasland, Stream's chief executive officer, and his management team along with Stream's 500 experienced and dedicated employees to the MRC Global team. Steinar will lead our offshore center of excellence from Stavanger as a Senior Vice President of the company. We are also delighted to be adding Jim Nulty and Phil Oakes, the general managers of Flangefitt, to our U.K. management group and to welcome Flangefitt's other 36 knowledgeable and skilled employees, to the MRC Global team," concluded Mr. Lane.
Mr. Aasland commented, "We are very pleased to be joining MRC Global. Combining the offshore strengths of Stream to MRC Global's core PVF offerings creates the leading PVF distribution platform in oil and gas for both land and offshore applications. The Stream management team and employees are pleased to become part of the industry leader."
Jim Nulty, general manager of MRC Flangefitt, commented, "We are very pleased to be joining the leader in PVF distribution to the oil and gas industry, and combining Flangefitt's broad PFF high alloy offering and our extensive range of services to MRC's global project capabilities, which further enhance our value proposition to our customers."
MRC Global also announced that it has acquired Flangefitt Stainless Ltd. Flangefitt, headquartered in Warrington, England, with a location in Aberdeen, Scotland, is a leading pipe, flange and fitting (PFF) distributor to the oil and gas industry. Flangefitt's 2013 revenues are estimated to be approximately US$28 million and it will be operated as "MRC Flangefitt". MRC Global expects the acquisitions to be modestly accretive in 2014.
Andrew Lane, MRC Global chairman, president and chief executive officer, commented, "These acquisitions continue our multi-year international growth strategy, complement our previous international acquisitions and are expected to allow us to achieve over US$900 million in international segment revenues in 2014, with a target of over US$1.0 billion in 2015. The Stream acquisition provides MRC Global a platform for growth in offshore applications where our major customers have been very active. The acquisition of Flangefitt's PFF business complements our existing U.K. based, MRC Transmark valve business as well as the Stream Energy Piping business. We now have the full range of pipe, valves and fittings (PVF) to serve both the NCS and the U.K. Continental Shelf (UKCS) sectors as well as global projects with high-end alloy PFF requirements."
"We are very pleased to welcome Steinar Aasland, Stream's chief executive officer, and his management team along with Stream's 500 experienced and dedicated employees to the MRC Global team. Steinar will lead our offshore center of excellence from Stavanger as a Senior Vice President of the company. We are also delighted to be adding Jim Nulty and Phil Oakes, the general managers of Flangefitt, to our U.K. management group and to welcome Flangefitt's other 36 knowledgeable and skilled employees, to the MRC Global team," concluded Mr. Lane.
Mr. Aasland commented, "We are very pleased to be joining MRC Global. Combining the offshore strengths of Stream to MRC Global's core PVF offerings creates the leading PVF distribution platform in oil and gas for both land and offshore applications. The Stream management team and employees are pleased to become part of the industry leader."
Jim Nulty, general manager of MRC Flangefitt, commented, "We are very pleased to be joining the leader in PVF distribution to the oil and gas industry, and combining Flangefitt's broad PFF high alloy offering and our extensive range of services to MRC's global project capabilities, which further enhance our value proposition to our customers."
