MRC Global Inc. To Acquire Production Specialty Services
HOUSTON, Nov. 30, 2012 /PRNewswire/ -- MRC Global Inc.
(NYSE:MRC) announced today that the company's U.S. operating
subsidiary, McJunkin Red Man Corporation, has signed an agreement
to acquire the operating assets of Production Specialty Services,
Inc. Headquartered in Midland,
Texas and established in 1990, Production Specialty Services
supplies pipe, valves and fittings as well as other MRO products to
the oil and gas industry. Production Specialty Services operates 17
service locations, including one distribution center, in the
Permian Basin and Eagle Ford shale regions of Texas and New
Mexico.
The Permian Basin is the most active oil drilling and production
region in the United States.
Currently more than 425 rigs are operating within the region. With
the acquisition of Production Specialty Services' 17 locations, MRC
will have a service location network of 23 branches and one major
distribution center supporting the Permian Basin energy
infrastructure activity.
"This acquisition is part of MRC's continued commitment to
support our customers' growth in a major oil producing region of
the U.S.," Andrew R. Lane, MRC
Chairman, President and CEO, said. "We are pleased to have
Ronnie Crossland joining our
regional management team and would like to welcome all of the
Production Specialty Services employees to MRC."
"The MRC culture of customer service and integrity was a key
factor in our decision to join with MRC," Ronnie Crossland, Production Specialty Services
President, said. "We know this is the right fit for the future of
our company and look forward to continuing to serve our customers
with an expanded depth of products and services throughout the
Permian and Eagle Ford as part of MRC."
Production Specialty Services has projected 2012 revenue of
$127 million. The acquisition is
subject to customary closing conditions, including the expiration
or early termination of the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976.
More About MRC Global Inc.
Headquartered in Houston,
Texas, MRC, a Fortune 500 company, is the largest global
distributor of pipe, valve, and fittings (PVF) and related products
and services to the energy industry, based on sales, and supplies
these products and services across each of the upstream, midstream
and downstream sectors. More information about MRC can be
found at www.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 "projected" and similar expressions are
intended to identify forward-looking statements. The company's
expectations of the projected revenue for Production Specialty
Services Inc. are only the company's expectations regarding this
projection. Whether Production Specialty Services is actually
successful in achieving this projected revenue is dependent on a
number of factors, including (among others) changes in oil and
natural gas industry expenditure levels, which may result from
changes in oil and natural gas prices or other factors; increased
usage of alternative fuels, which may negatively affect oil and
natural gas industry expenditure levels; U.S. and international
general economic conditions; Production Specialty Services' ability
to compete successfully with other companies in industry; risks
that customers may not desire to continue to business with
Production Specialty Services given the announcement of MRC's
agreement to acquire Production Specialty Services; the risk that
manufacturers of the products Production Specialty Services
distributes will sell a substantial amount of goods directly to end
users in the industries it serves; unexpected supply shortages;
cost increases by the its suppliers; Production Specialty Services
lack of long-term contracts with most of its suppliers; increases
in customer, manufacturer and distributor inventory levels;
suppliers' price reductions of products that Production Specialty
Services sells, which could cause the value of its inventory to
decline; decreases in steel prices, which could significantly lower
its profit; increases in steel prices, which it may be unable to
pass along to its customers, which could significantly lower its
profit; Production Specialty Services' lack of long-term contracts
with many of its customers and its lack of contracts with customers
that require minimum purchase volumes; changes in its customer and
product mix; risks related to its customers' credit; the potential
adverse effects associated with integrating Production Specialty
Services into the company's business and whether the acquisition
will yield their intended benefits; changes in the Production
Specialty Services' credit profile; a decline in demand for certain
of the products that Production Specialty Services distributes if
import restrictions on these products are lifted; environmental,
health and safety laws and regulations; the sufficiency of its
insurance policies to cover losses, including liabilities arising
from litigation; product liability claims against the Production
Specialty Services; the potential loss of key personnel;
interruption in the proper functioning of the Production Specialty
Services' information systems; loss of third-party transportation
providers; and risks related to adverse weather events or
natural disasters.
Undue reliance should not be placed on the company's
forward-looking statements. Although forward-looking statements
reflect the company's good faith beliefs, reliance should not be
placed on forward-looking statements because they involve known and
unknown risks, uncertainties and other factors, which may cause the
company's actual results, performance or achievements or future
events to differ materially from anticipated future results,
performance or achievements or future events expressed or implied
by such forward-looking statements. The company undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events,
changed circumstances or otherwise, except to the extent required
by law.
Contacts:
James E. Braun, EVP &
Chief Financial Officer
MRC Global
Inc.
Jim.Braun@mrcpvf.com
832-308-2845
Ken Dennard, Managing
Partner
DRG&L
ksdennard@drg-l.com
713-529-6600
SOURCE MRC Global Inc.