Piping components maker Flangefitt sold to US giant
NORTH West piping components manufacturer Flangefitt Stainless has been sold to US Fortune 500 company MRC Glogal
Based in Warrington Flangefiit supplies valves, fittings and flanges to the onshore,offshore, sub-sea, nuclear and mining sectors.
In the year to September 2012 it made profits of £3.5m on annual revenues of £24.5m. Current year revenues are around $28m (£17m) MRC Global said.
Financial terms of the sale were not disclosed. MRC Global has its corporate headquarters in Houston, Texas and is the largest global distributor of pipe, valves and fittings and related products and services to the energy industry. It operates at more than 400 locations around the world and has a regional base in Bradford.
Post acquisition Flangefitt will be operated as MRC Flangefitt.
Andrew Lane, MRC Global chairman and chief executive said: “The acquisition of Flangefitt’s PFF (pipel, flange and fitting) business complements our existing UK based, MRC Transmark valve business as well as the recently announced acquisition of Stream Energy Piping in Norway.
“We now have the full range of pipe, valves and fittings to serve the UK continental shelf well as global projects with high-end alloy PFF requirements.
“We are very pleased to be adding Jim Nulty and Phil Oakes, the general managers of Flangefitt, to become part of our UK management team as well as Flangefitt’s other 36 knowledgeable and skilled employees, who are joining the MRC Global team.”
Majority shareholder Mr Nulty, who set up the business in 1985 with Mr Oakes, said: “We are very pleased to be joining the leader in pipe, valves and fittings distribution to the oil and gas industry. Combining Flangefitt’s offering and our extensive range of services to MRC’s global project capabilities will further enhance our value proposition to our customers.”
The deal was led by the Manchester-based corporate finance team from business advisers Grant Thornton. Ali Sharifi, head of corporate, commented: “We congratulate Jim and Phil on the completion of this deal. Flangefitt will help MRC gain more penetration into European markets.”
