MRC Global to sell OCTG business
MRC Global Inc. has entered into a definitive agreement to sell its U.S. OCTG business to Sooner Pipe, LLC, a subsidiary of Marubeni-Itochu Tubulars America Inc., for $48 million.
MRC Global's U.S. OCTG sales were approximately $305 million in 2015. The transaction is 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," said Andrew R. Lane, MRC Global's chairman, president and chief executive officer. "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 the business."
INDUSTRIAL SUPPLY MAGAZINE
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