Castle Expands Oil & Gas Business with Tube Supply Acquisition
A.M. Castle & Co. Oak Brook, Ill., plans to acquire Houston-based Tube Supply Inc., a value-added distributor of specialty tubular and bar products for the oil and gas industry. Castle expects to close the $165 million transaction by the end of first-quarter 2012.
“We are extremely excited to add such a high-quality company, experienced management team and dedicated employees to the A.M. Castle family,” says Michael Goldberg, president and CEO. “Tube Supply is a strong complement to our existing oil and gas business, and our presence in the oil and gas industry will nearly triple with this acquisition.”
Tube Supply has provided products and services primarily to the North American oilfield equipment manufacturing industry for the past 25 years. Tube Supply had unaudited revenues of $208 million for the 12-month period ended Oct. 31. It operates service centers in Houston and Edmonton, Alberta, and recently completed construction of a new, 250,000-square-foot facility at its Houston headquarters.
Tube Supply's management team will remain in place, and the combination of the two businesses will be led by Nick Jones, president of A.M. Castle's Oil & Gas Commercial Unit, which is also headquartered in Houston.
“Tube Supply has a solid track record in the oil and gas market, and we anticipate further growth through expanded product offerings to both Tube Supply's and A.M. Castle's customers. This partnership is a great long-term strategic fit that will allow us to capitalize on the growing demand and exciting opportunities we see in this sector,” Goldberg says.