McJunkin Red Man To Acquire OneSteel Piping Systems
McJunkin Red Man Holding Corp. recently announced it has signed an agreement to acquire the operations and assets of OneSteel Piping Systems. The acquisition price is AUD $67 million and the transaction is expected to close in the first quarter of 2012.
According to the company, this acquisition continues MRC’s international expansion in targeted key markets and supports its vision to be the premier distributor of pipe, valve and fitting 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 Oct. 2009, and Perth-based MRC SPF in June 2011.
When the strengths of MRC Piping Systems Australia are combined with the 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 and project needs of its key customers throughout Australia in oil and gas, mining and mineral processing.
Formed in 2011 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 has a nationwide distribution network with 12 sites in Queensland, New South Wales, Victoria, South Australia, Western Australia and Northern Territory.
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.
“This acquisition furthers our vision to be the world’s premier PVF distribution company to the energy and industrial sectors,” MRC President and CEO Andrew Lane stated.