MRC Global Inc. announced 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. 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 theU.S. 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.
Production Specialty Services has projected 2012 revenue of USD 127M. 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.