Tuesday, June 1, 2010

McJunkin Red Man buys South Texas Supply

Acquisition expands MRC's commitment to customers in the oil and gas shale plays across North America

McJunkin Red Man Corp. acquired The South Texas Supply Co. Inc. as part of its strategic plan to increase business with customers in the active shale plays across North America. Terms of the deal were not disclosed.

The acquisition will help MRC support customers in the oil and gas exploration as well as pipeline and transmission infrastructure markets, the distributor said. South Texas Supply supports customers in the Eagle Ford Shale, a rock formation across several counties in South Texas where oil and natural gas can be found.

South Texas Supply operates two branches in the region, in Carrizo Springs and Dilley, Texas. Selling shareholder Mark Hassell will continue to manage the two locations, MRC said in a press release. The branches enhance MRC's coverage in South Texas, which includes locations in Laredo, Corpus Christi, Gonzales, Mission, and Jourdanton, Texas. MRC plans additional expansion in the area with a regional hub and major pipe yard, increased inventory, and enhanced logistics to meet local customers' needs.

MRC is also focused on organic growth to serve the activce shale plays nationwide. Earlier this year, the distributor opened a new facility in Horseheads, N.Y., to support northern activity in the Marcellus Shale, and has plans to open branches in Shreveport, La., and Center, Texas, to support the Haynesville Shale in the Gulf Coast area.

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