Oct. 2, 2013
Northwest Exploring Options for OCTG Business
Northwest Pipe Co., Vancouver, Wash., is exploring strategic alternatives for its oil country tubular goods business. The options include potential acquisitions, divestitures and joint ventures.
The company has retained Raymond James & Associates Inc. as financial advisor to assist in this initiative. Northwest Pipe said no formal decisions have been made and no agreements have been reached concerning the company's OCTG operations.
"The decision to evaluate options for our OCTG business follows a comprehensive review of the company's strategy, asset base and future direction with our board of directors," says Scott Montross, Northwest Pipe president and CEO. "Furthermore, our long-term desire is to sharpen our focus on growing our core water transmission business through organic initiatives like the recent $12 million investment in our Saginaw, Texas, facility, as well as through acquisitions.
While Northwest Pipe will assess strategic options for its OCTG operations, including the addition of downstream processing capabilities, the company will continue its investment in the expansion of the company’s Atchison, Kan., facility, which is scheduled to be completed in the first quarter of 2014. The company has committed more than $35 million in Atchison to enhance its position in the energy tubular market.