HOUSTON, Feb. 10, 2016 /PRNewswire/ -- MRC Global Inc.
(NYSE: MRC), the largest global distributor, based on sales, of
pipe, valves and fittings and related products and services to the
energy industry, today announced that it 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, subject to certain
adjustments. MRC Global's U.S. OCTG sales were approximately
$305 million in 2015. As a result of
the expected sale, a pre-tax charge of approximately $5.0 million is expected to be recorded in the
fourth quarter of 2015. The transaction is expected to close in the
first quarter of 2016, subject to customary closing conditions.
Andrew R. Lane, MRC Global's
chairman, president and chief executive officer, stated, "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. 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."
About MRC Global Inc.
Headquartered in Houston,
Texas, MRC Global, a Fortune 500 company, is the largest
global distributor, based on sales, of pipe, valves and fittings
(PVF) and related products and services to the energy industry and
supplies these products and services across each of the upstream,
midstream and downstream sectors. More information about MRC Global
can be found on our website mrcglobal.com.
Forward looking statements
This news release contains forward-looking statements within
the meaning of Section 27A of the Securities Act and
Section 21E of the Exchange Act. Words such as "expected" and
similar expressions are intended to identify forward-looking
statements. MRC Global's expectations of a first quarter 2016
closing and fourth quarter 2015 charge as a result of the closing
are only its expectations. These expectations are subject to usual
and customary closing conditions and the buyer completing the
transaction.
Contact:
Monica Broughton
Investor Relations
MRC Global Inc.
Monica.Broughton@mrcglobal.com
832-308-2847
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SOURCE MRC Global Inc.