McJunkin Red Man Corp.(MRC) announced signing an agreement to acquireStainless Pipe and Fittings Australia Pty Ltd(SPF), as part of its strategic vision to be the world’s premier PVF distribution company to the energy and industrial markets. SPF will operate asMRC SPF, effective by the end of June when the transaction closes.
SPF, founded in 1996, is the largest distributor of stainless steel piping products in the southern hemisphere. Headquartered in Perth, Western Australia, SPF has seven locations across Australia as well as Korea, Italy, UK and United Arab Emirates.
SPF’s state-of-the-art, 430,000-sq.-ft. facility based in Perth would become MRC’s premier pipe, fittings and flange (PFF) stocking and distribution center for Australasia. Complementing the Perth facility are two additional stocking locations in Australia, as well as strategically placed stockholdings in the Jebel Ali Free Zone, UAE and in the UK.
Acquiring SPF would increase MRC’s global PFF stockholding in stainless steel to a value in excess of US$50 million, with global stainless PFF sales of more than US$300 million. The acquisition would also complement MRC’s 2009 purchase of Transmark Fcx (MRC Transmark), a leading valve distributor in the eastern hemisphere.
Source: McJunkin Red Man Corp.
