MRC to buy Australian PVF distributor

McJunkin Red Man Holding Corporation (MRC) announced that it has signed an agreement to acquire OneSteel Piping Systems (OPS).

OPS will operate as "MRC Piping Systems Australia." This Sydney-based acquisition follows the acquisition of Melbourne-based MRC Transmark Australia in October 2009, and Perth-based MRC SPF in June 2011. The acquisition price is $67.7 million and the transaction is expected to close in the first quarter of 2012.

Formed in 2001 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 is a PVF product and service specialist supplying the oil and gas, mining and mineral processing industries. Headquartered in Sydney, New South Wales, OPS has a nationwide distribution network with 12 sites in Queensland, New South Wales, Victoria, South Australia, Western Australia and Northern Territory.

MRC, with $4.6 billion in revenue over the prior four quarters, has more than 400 global service locations and approximately $900 million of PVF stock strategically located around the globe. Following the acquisition, 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.

Andrew Lane, Chairman, president and chief executive officer, said: "This acquisition furthers our vision to be the world's premier PVF distribution company to the energy and industrial sectors. Australian oil and gas, mining and mineral processing end markets are strategic for MRC, and following the acquisition we will be the largest PVF distribution company in Australia in the sectors we serve."

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