MRC Global Inc. (NYSE: MRC) said Feb. 10 it plans to reduce its exposure to upstream drilling volatility by shedding assets for $48 million.
The Houston company has entered into an agreement to sell its U.S. oil country tubular goods (OCTG) business to Sooner Pipe LLC, a subsidiary of Marubeni-Itochu Tubulars America Inc.
"We remain committed to our line pipe business as it has applications across each of the upstream, midstream and downstream end markets," said Andrew R. Lane, MRC Global's chairman, president and CEO. "This transaction benefits our U.S. OCTG customers, suppliers and employees by placing the business with the leading OCTG distributor and service provider."
Lane said the company will work with Sooner to ensure a smooth transition of the business.
MRC Global's U.S. OCTG sales were about $305 million in 2015, the release said. As a result of the expected sale, a pre-tax charge of about $5 million is expected to be recorded in the fourth quarter of 2015.
The transaction is expected to close in the first quarter of 2016, subject to customary closing conditions.
MRC Global is the largest global distributor, based on sales, of pipe, valves and fittings and related products and services to the energy industry, according to the release.
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