Edgen Murray buys PetroSteel

Staff -- Industrial Distribution, 5/1/2007

Edgen Murray Corp. agreed to buy PetroSteel International, a distributor of specialty offshore-grade steel plates and profiles headquartered in Bala Cynwyd, Pa.

Terms of the deal, which was expected to close around April 30, were not disclosed.

“We believe the acquisition of PetroSteel will broaden our offshore product base, allowing us to provide a comprehensive supply solution to our customers in the oil and gas industry,” said CEO Dan O'Leary. “In addition to expanding our product base, we believe this acquisition will bring outstanding personnel and leadership to our organization.”

PetroSteel had revenues of roughly $92 million last year.

Edgen Murray also announced a recapitalization and refinancing plan, in which Lehman Brothers and Jefferies Finance LLC will provide $500 million in debt financing.

A portion of the cash will be used to retire about $266 million in debt. Another portion will be used to buy all of Edgen Murray's subsidiaries from existing partners, with the remainder used for general corporate purposes.

Baton Rouge, La.-based Edgen Murray distributes high-performance carbon and alloy steel PVF products to the energy infrastructure industry. The company ranked 24th on INDUSTRIAL DISTRIBUTION's 2006 Big 50 list of distributors, and had revenues of $686 million last year.