Northwest Pipe Company to Review Strategic Options for OCTG Operations
September 30 2013 - 9:12PM
Marketwired
Northwest Pipe Company (NASDAQ: NWPX) announced today it is in the
process of exploring strategic alternatives for its Oil Country
Tubular Goods (OCTG) business, which could include potential
acquisitions, divestitures and joint-ventures. The Company has
retained Raymond James & Associates, Inc. as financial advisor
to assist in this initiative. Northwest Pipe said no formal
decisions have been made and no agreements have been reached
concerning the company's OCTG operations.
"The decision to evaluate options for our OCTG business follows
a comprehensive review of the Company's strategy, asset base and
future direction with our Board of Directors," said Scott Montross,
Northwest Pipe President and CEO. "Furthermore, our long-term
desire is to sharpen our focus on growing our core Water
Transmission business through organic initiatives like the recent
$12 million investment in our Saginaw, Texas facility as well as
through acquisitions. While Northwest Pipe will assess strategic
options for its OCTG operations, including the addition of
downstream processing capabilities, nothing about this review
alters the Company's commitment and continued investment and
expansion currently taking place at our Atchison, Kansas facility,
which is scheduled to be completed in the first quarter of 2014.
Our most recent $15 million investment in Atchison is the
culmination of over $35 million of investments that have been made
at Atchison, over the last several years, to significantly enhance
our long term competitive position in the Energy Tubular market.
Additionally, we continue a focused and active corporate
development effort regarding strategic add-on acquisitions that fit
our long-term strategic plan."
About Northwest Pipe Company Northwest
Pipe Company manufactures welded steel pipe and other products in
two business groups. Its Water Transmission Group is the leading
supplier of large diameter, high-pressure steel pipe products that
are used primarily for water infrastructure in North America. Its
Tubular Products Group manufactures smaller diameter steel pipe for
a wide range of products including energy, construction,
agriculture and industrial systems. The Company is headquartered in
Vancouver, Washington and has nine manufacturing facilities across
the United States and Mexico.
Forward-Looking Statements Statements in
this press release by Scott Montross are "forward-looking"
statements within the meaning of the Securities Litigation Reform
Act of 1995 and Section 21E of the Exchange Act that are based on
current expectations, estimates and projections about our business,
management's beliefs, and assumptions made by management. These
statements are not guarantees of future performance and involve
risks and uncertainties that are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements as a
result of a variety of important factors. While it is impossible to
identify all such factors, those that could cause actual results to
differ materially from those expected by us include the results of
our exploration of strategic alternatives for our OTCG business,
including any transactions or other actions undertaken as a result
of such efforts, our ability to identify and complete internal
initiatives and/or acquisitions in order to continue to grow our
Water Transmission business or that otherwise fit our long-term
strategic plan, and other risks discussed in our Annual Report on
Form 10-K for the year ended December 31, 2012 and from time to
time in our other Securities and Exchange Commission filings and
reports. Such forward-looking statements speak only as of the date
on which they are made and we do not undertake any obligation to
update any forward-looking statement to reflect events or
circumstances after the date of this release. If we do update or
correct one or more forward-looking statements, investors and
others should not conclude that we will make additional updates or
corrections with respect thereto or with respect to other
forward-looking statements.
For Further Information, Contact: Robin Gantt Chief
Financial Officer 360-397-6250
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