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Vallourec Acquires Serimax
04/22/2010 - Vallourec has reached an agreement to acquire 100% of Serimax, which the company says will complement its existing line pipe operations that account for about 10% of the Group’s total Oil and Gas sales. The purchase price amounts to €150 million.
Vallourec has reached an agreement to acquire 100% of Serimax, which the company says will complement its existing line pipe operations that account for about 10% of the Group’s total Oil and Gas sales. The purchase price amounts to €150 million.
Offshore line pipes are used to connect the wellhead structures on the sea bed either to the floating production platforms or to the shore. These line pipes, which consist of single lengths of seamless steel pipes that are welded together, require the use of premium grade steels.
Vallourec and Serimax will combine their respective expertise in pipe manufacturing and welding to optimize the laying process, offering integrated solutions to customers. The two companies have already worked closely on major line pipe projects, including the Yme field in Norway for Talisman, the Ursa field in the Gulf of Mexico for Shell, and the Canapu field in Brazil for Petrobras.
“Serimax’ welding expertise is a strong fit with our strategy of providing premium tubular solutions for the Oil & Gas industry,” said Philippe Crouzet, Chairman of Vallourec Management Board. “Recognized for its experience in major international line pipe projects, Serimax has a reputation for quality, service, and innovation. Its strong commitment to R&D enables the company to respond to specific customer needs and new challenges with full service welding solutions. Its welding services combined with our line pipe offering for deep offshore fields will broaden Vallourec’s Global Solutions offer.”
David Williams, Serimax Chief Executive Officer, added: “Being part of the Vallourec Group opens up some very exciting opportunities for Serimax. Over the past six years we have progressively built Serimax in pursuit of our vision to be the international full services welding partner of choice. Vallourec’s strong corporate culture for services and solutions along with an outstanding commitment to innovation will be a perfect fit for us to continue developing this vision in the interest of our clients.”
The acquisition—subject to customary regulatory approvals—will be financed out of available liquidity. The main vendors of Serimax are Lime Rock Partners and 4D Global Energy Development Capital Fund. Simmons & Co. acted as their advisors for this transaction.
Serimax is an international full service welding company that plans, designs, manages, and provides fully integrated offshore welding solutions in the most extreme conditions and challenging environments. Headquartered in France, Serimax employs 800 people and has welding workshop facilities in the U.S., France, U.K., and Malaysia. It has recently opened sales offices in Russia and Brazil to serve the growing demand in both countries. Its business is primarily project based; in 2009, Serimax conducted 50 projects in more than 20 countries with total sales of €152 million.
Vallourec is a world leader in premium tubular solutions primarily serving the energy markets, as well as other industrial applications. With a presence in more than 20 countries, Vallourec has over 18,000 employees, integrated manufacturing facilities, and advanced R&D.
