MRC Global Inc. announced they have entered into a definitive merger agreement pursuant to which DNOW will acquire MRC Global in an all-stock transaction valued at approximately $1.5 billion, including MRC Global’s net debt.
Both companies anticipate the all-stock transaction will close by the fourth quarter of 2025, pending approvals from shareholders and regulatory authorities.
The newly formed company will retain the DNOW brand, with its global headquarters situated in Houston, Texas. This merger brings together over 350 combined service and distribution locations spread across more than 20 countries, significantly broadening the geographic reach and service capabilities of both entities.
Upon finalizing the deal, DNOW shareholders will hold approximately 56.5% of the combined company’s shares, with MRC Global shareholders owning roughly 43.5%. Under the transaction terms, each MRC Global shareholder will receive 0.9489 shares of DNOW stock for every share of MRC stock owned, representing a premium of 6.8% over MRC Global’s recent closing stock price.
Both companies anticipate annual cost synergies of around $70 million within three years of integration. This merger expects to enhance operational efficiencies and market competitiveness, with immediate positive impacts projected for adjusted earnings per share starting from the first year post-merger.
Leadership of the combined organization will remain with DNOW’s current CEO, David Cherechinsky. Additionally, MRC Global will have representation on the expanded 10-member board, ensuring continuity and strategic oversight.
The merger marks a significant consolidation within the energy, industrial, gas utility, and downstream markets, positioning the new DNOW as a comprehensive supplier of industrial products and services globally.
Courtesy of DNOW Inc.