HOUSTON -- McJunkin Red Man Holding Corporation (MRC) today announced that it has signed an agreement to acquire the operations and assets of OneSteel Piping Systems (OPS). This latest acquisition continues MRC’s international expansion in targeted key markets and supports MRC’s vision to be the premier distributor of pipe, valve and fitting (PVF) products in the world. Effective as of closing, OPS will operate as “MRC Piping Systems Australia”.
This Sydney-based acquisition follows the acquisition of Melbourne-based MRC Transmark Australia in October 2009, and Perth-based MRC SPF in June 2011. When the strengths of MRC Piping Systems Australia are combined with these previous acquisitions, MRC will have Australia’s largest full-line product offering including carbon steel, stainless steel, and alloy pipe, valves, fittings and flanges to serve both the maintenance, repair and operations (MRO) and project needs of its key customers throughout Australia in oil and gas, mining and mineral processing. The acquisition price is $67.7 million (AUD $67 million) and the transaction is expected to close in the first quarter of 2012.
Formed in 2001 as a merger between Tubemakers Piping Systems and Pipeline Supplies Australia, OPS currently operates as a division of OneSteel Limited’s Australian distribution business. OPS is a leading PVF product and service specialist with proven capabilities supplying the oil and gas, mining and mineral processing industries. Headquartered in Sydney, New South Wales, OPS has a nationwide distribution network with 12 sites in Queensland, New South Wales, Victoria, South Australia, Western Australia and Northern Territory.
MRC, with $4.6 billion in revenue over the prior four quarters, has more than 400 global service locations and approximately $900 million of PVF stock strategically located around the globe. Following the acquisition, MRC’s combined Australia pro forma 2011 revenue will be in excess of $250 million, with approximately 365 employees in 20 sites and $70 million in inventory.
Andrew Lane, Chairman, President and Chief Executive Officer commented, “this acquisition furthers our vision to be the world’s premier PVF distribution company to the energy and industrial sectors. Australian oil and gas, mining and mineral processing end markets are strategic for MRC, and following the acquisition we will be the largest PVF distribution company in Australia in the sectors we serve. The combined capabilities of MRC Piping Systems, MRC Transmark and MRC SPF in Australia can provide our key customers and suppliers a one-stop solution for all their PVF needs. From this strong platform in Australia, we expect to be wellpositioned to expand our presence in the Asia Pacific region. On behalf of the MRC management team, we are very pleased to be adding Grant Bates as General Manager of MRC Piping Systems Australia, and we look forward to welcoming all of OneSteel Piping Systems’ 209 employees to MRC on the closing of this acquisition.”
Grant Bates commented, “we are very pleased to be joining the MRC team. As the global leader in our core PVF energy and mining business, MRC brings the experience, scale and resources to allow us to better serve our customers. The combined strengths of OPS, MRC Transmark and MRC SPF create the leading PVF distribution business in Australia.”