Northwest Pipe Sells OCTG Business to Centric Pipe
04/01/2014 - Northwest Pipe Company has sold substantially all of its oil country tubular goods (OCTG) assets to Centric Pipe LLC, an affiliate of Dallas-based OCTG supplier SB International Inc., for a purchase price of US$42.7 million.
The company will retain ownership of, and lease to Centric Pipe its Houston, Texas, real property. Centric Pipe will have the option to purchase the Houston real property at a later date.
"After reviewing a full range of alternatives for our OCTG business, we determined that a sale to Centric Pipe provided the best outcome for the Company, our shareholders, and our employees," said Scott Montross, Northwest Pipe president and CEO. "This divestiture will enable us to increase our focus on growing our core Water Transmission business, while placing these assets in the hands of an experienced OCTG company with global relationships. This announcement in no way affects the company's commitment to and continued investment in our Atchison, Kan., line pipe facility which is on schedule to complete a major expansion project."
Raymond James & Associates, Inc. served as exclusive financial advisor to Northwest Pipe in connection with this transaction and assisted in the review of strategic alternatives for the OCTG business.
Northwest Pipe Company is a leading manufacturer of welded steel pipe and tube products. The Tubular Products Group operates a state of the art electric resistance weld mill facility. The Tubular Products portfolio serves a wide-range of markets and its quality certified pipe and tube products are good for applications including: oil and gas, structural industrial, fire protection, low pressure and agricultural. The Water Transmission Group is the largest manufacturer of engineered steel pipe water systems in North America. With eight Water Transmission manufacturing facilities, the Group is positioned to meet North America's growing needs for water and wastewater infrastructure. The Water Transmission Group serves a wide-range of markets and their solution-based products are a perfect fit for applications including: water transmission, plant piping, energy, tunnels, river crossings, structural, industrial and construction. The company is headquartered in Vancouver, Wash., and has manufacturing facilities in the United States and Mexico.
"After reviewing a full range of alternatives for our OCTG business, we determined that a sale to Centric Pipe provided the best outcome for the Company, our shareholders, and our employees," said Scott Montross, Northwest Pipe president and CEO. "This divestiture will enable us to increase our focus on growing our core Water Transmission business, while placing these assets in the hands of an experienced OCTG company with global relationships. This announcement in no way affects the company's commitment to and continued investment in our Atchison, Kan., line pipe facility which is on schedule to complete a major expansion project."
Raymond James & Associates, Inc. served as exclusive financial advisor to Northwest Pipe in connection with this transaction and assisted in the review of strategic alternatives for the OCTG business.
Northwest Pipe Company is a leading manufacturer of welded steel pipe and tube products. The Tubular Products Group operates a state of the art electric resistance weld mill facility. The Tubular Products portfolio serves a wide-range of markets and its quality certified pipe and tube products are good for applications including: oil and gas, structural industrial, fire protection, low pressure and agricultural. The Water Transmission Group is the largest manufacturer of engineered steel pipe water systems in North America. With eight Water Transmission manufacturing facilities, the Group is positioned to meet North America's growing needs for water and wastewater infrastructure. The Water Transmission Group serves a wide-range of markets and their solution-based products are a perfect fit for applications including: water transmission, plant piping, energy, tunnels, river crossings, structural, industrial and construction. The company is headquartered in Vancouver, Wash., and has manufacturing facilities in the United States and Mexico.
