MRC Global recently announced it has entered into a definitive agreement to sell its U.S. OCTG business to Sooner Pipe, a subsidiary of Marubeni-Itochu Tubulars America, for $48 million, subject to certain adjustments. MRC Global’s U.S. OCTG sales were about $305 million in 2015. The transaction was expected to close in the first quarter of 2016, subject to customary closing conditions.
“The divestiture of our OCTG product line is the culmination of our strategy to reduce our exposure to upstream drilling volatility and to focus on growing our higher-margin product lines, particularly our valve, valve automation and instrumentation business,” MRC Global Chairman, President and CEO Andrew Lane said. “We remain committed to our line pipe business as it has applications across each of the upstream, midstream and downstream end markets. This transaction benefits our U.S. OCTG customers, suppliers and employees by placing the business with the leading OCTG distributor and service provider. We will work with Sooner to ensure a smooth transition of business.”