Goldman Sachs (GS) Capital Partners is poised to acquire “a substantial investment” in McJunkin Corp. in a deal approved by the McJunkin Board of Directors. A source within the company said the deal would result in majority ownership for GS Capital Partners.
“GS Capital Partners’ significant financial resources and expertise in our
markets create new growth opportunities and strengthen McJunkin for the
long-term,” commented H.B. Wehrle III, McJunkin’s CEO and president.
Henry Cornell, head of the Americas and Asia for GS Capital Partners, said, “We
believe that the culture and values of McJunkin are at the heart of its great
track record of success. We look forward to partnering with McJunkin’s
management team, employees and shareholders, to maintain its unique culture
while positioning the company for further growth.”
The transaction, subject to shareholder approval, is expected to close within
60 days of the early December announcement. H.B
Wehrle III will continue to lead the company as president and CEO from
McJunkin’s headquarters in Charleston,
WV. The senior management in both
the industrial and oilfield divisions also will remain in place.
McJunkin shareholders will retain a substantial investment in the company.
Terms of the transaction were not disclosed.
McJunkin Corp. is a privately held distributor founded in 1921 and is generally
considered to be the nation’s largest supplier of industrial PVF and integrated
services. Some observers believe the acquisition by GS Capital Partners sets
the stage for a public offering.
Established in 1992, GS Capital Partners is a private equity arm for the
investment banking giant Goldman Sachs. The parent company was founded in 1869.
GS Capital Partners To Take Control Of McJunkin
January 19, 2007