April 2, 2014
Northwest Pipe Sells OCTG Business to Centric Pipe
Centric Pipe LLC, an affiliate of Dallas-based SB International Inc., has acquired the oil country tubular goods assets of Vancouver, Wash.-based Northwest Pipe Co. The purchase price was $42.7 million.
"After reviewing a full range of alternatives for our OCTG business, we determined that a sale to Centric Pipe provided the best outcome for the company, our shareholders and our employees," says Scott Montross, Northwest Pipe president and CEO. "This divestiture will enable us to increase our focus on growing our core water transmission business, while placing these assets in the hands of an experienced OCTG company with global relationships."
SB International is a steel distribution company supplying OCTG and line pipe to the oil and gas industry in both the United States and Canada. SB is also an importer and exporter of specialized steel products.
"This is an exciting beginning for Centric Pipe. Already at the beginning phase of operations, Centric Pipe is capable of manufacturing quality products to meet some very challenging downhole applications in the oil and gas drilling industry," says Centric Pipe Senior Vice President Arish Gupta. "We look forward to providing new capital as well as marketing and sales avenues to make Centric Pipe a leading supplier of high-quality OCTG."
Northwest officials say the announcement will not affect the company's continued investment in the Atchison, Kan., line pipe facility, which is on schedule to complete a major expansion project.