Now Inc., a spinoff of oil field services company National Oilwell Varco, has announced plans to buy up a company that supplies pipes, valves and fittings to the energy industry.
Challenger Industries Inc., based in Bismarck, North Dakota, services all sectors of the oil and gas industry, including downstream companies such as refineries and chemical plants, along with midstream firms that operate pipelines.
The terms of the all-cash deal were not disclosed and the transaction hinges on regulatory approvals, Now Inc. said.
The acquisition expands Now’s footprint in those two key sectors which have weathered the recent oil slump better than their exploration and production counterparts in the upstream sector. In addition, the Challenger Industries deal strengthens Now’s ability to serve its upstream customers in the Rocky Mountain region.
Now Inc. was spun off from National Oilwell Varco last year, becoming one of the largest distributors in the energy industry. The company provides distribution and supply chain services for companies in the oil and gas sector, as well as industrial firms. Now Inc., which employs 5,000 people across 330 locations, plans to hire Challenger’s 160 employees who work in 11 sales and operations locations across the U.S.
“We look forward to welcoming the Challenger employees to our team,” Now’s President and CEO Robert Workman said in a statement.