Bri-Chem Corp., a leading North American wholesale distributor and manufacturer of oil and gas drilling fluids, is pleased to announce that it has completed the sale of its Steel Pipe Manufacturing division and Steel Pipe Distribution division including their respective assets and ongoing business operations to a U.S.-based steel company. Bri-Chem will not retain any steel pipe assets or conduct any further steel pipe business operations going forward. The sale transaction provides Bri-Chem the opportunity to further its North American drilling fluids growth strategy by expanding its leadership position in existing markets and penetrating future growth into new drilling fluid market segments.
"Bri-Chem's USA drilling fluids expansion success has led to an overabundance of opportunities and this divestiture will position our company to deliver focused organic and acquisitive growth on a sustainable basis," said Don Caron, Chief Executive Officer of Bri-Chem. "We do not believe that the value of our North American leading wholesale drilling fluids market position is being adequately reflected in our stock price. By monetizing the steel pipe assets, we will be able to unleash the growth potential that resides within our market leading drilling fluids markets."