McJunkin Red Man Corporation (MRC) has signed an agreement to acquire Stainless Pipe and Fittings Australia Pty Ltd (SPF). This brings MRC one step closer to realizing the company’s strategic vision to be the world’s leading pipe, valve and fitting (PVF) distribution company for the energy and industrial markets. This acquisition will boost MRC’s international project capabilities by creating total PVF project supply capability across the globe. Scheduled to close by the end of June, the transaction is subject to customary closing conditions.
Founded in 1996, SPF is the largest stockist of stainless steel piping products in the southern hemisphere; they are a leading project supply specialist capable of supplying the Oil and Gas, Mining and Mineral Processing, Chemical and Petrochemical and Water Treatment and Desalination industries. With headquarters in Perth, Australia, SPF has seven locations across Australia as well as Korea, Italy, United Kingdom and United Arab Emirates. The company’s 40,000sqm stockholding facility in Perth will become MRC’s premier pipe, pipe fittings and flange (PFF) stocking and distribution center for Australasia. Equipped with state-of-the-art materials handling facilities, the plant can facilitate project laydowns and provide bulk supply provisions. There are two additional stocking locations in Australia, in addition to a strategically placed stockholding in the Jebel Ali Free Zone, UAE and in the United Kingdom.
Acquiring SPF will boost MRC’s global PFF stockholding in stainless steel to a value of over USD 50 million, with global stainless PFF sales of over USD 300 million. Currently, the USD 4 billion MRC group holds over 400 global service locations and USD 850 million dollars worth of PVF stock located globally.
