Wednesday, August 25, 2010

McJunkin Red Man buys Dresser Oil Tools & Supply

Dresser had sales of about $12 million in 2009

McJunkin Red Man Corporation (MRC) today announced the signing of a definitive agreement to acquire operations and assets from Dresser Oil Tools & Supply, as part of its strategic focus to increase its presence in the active shale basins across North America. The operations and assets to be purchased relate to the business of the sale and distribution of pipe, valves and fittings (PVF), oilfield production and drilling supplies and related products. These assets generated net sales of approximately $12 million in 2009. Other details of the transaction were not disclosed. The closing is expected to take place by the end of August.

To support oil and gas exploration and production, as well as the pipeline and transmission infrastructure, MRC plans to expand operations and inventory in active shales both organically and through acquisition, such as the purchase of operations and assets from Dresser Oil Tools & Supply within the Bakken Shale.

Dresser Oil Tools & Supply operates five branch locations in the region of Sidney, MT; Tioga, ND; Williston, ND; Stanley, ND and Mohall, ND, supplying PVF, oilfield and related products to the region since 1993. MRC is acquiring these five new branches to enhance its coverage in the Bakken Shale from its existing branch locations in Williston, ND and Belfield, ND.

Andrew Lane, MRC’s president, chief executive officer and chairman commented, “Following our acquisition of South Texas Supply in the Eagle Ford shale in May, we are pleased to add Dresser Oil Tools & Supply’s locations to our existing North Dakota branches servicing our customers in the active Bakken Shale. We are also pleased to have Dale Sundley, president of Dresser Oil Tools & Supply, join MRC as part of our region management group, and the employees of Dresser Oil Tools & Supply join the MRC team. MRC is committed to be the best provider of PVF products to support our customers’ plans in these major North America shales.”

Headquartered in Houston, Texas with corporate offices in Charleston, West Virginia and Tulsa, Oklahoma and operations centers in Calgary, Alberta, Canada and Bradford, United Kingdom, MRC is the largest global distributor of PVF and related products and services to the energy and industrial sectors, based on sales, and supplies these products and services across each of the upstream, midstream and downstream markets.

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