MRC Global to Acquire Hypteck - Analyst Blog

MRC Global Inc. MRC recently announced the finalization of an agreement to acquire the Norway-based, privately-held, Metron Holding AS. Metron Holding's acquisition comes with its subsidiary Hypteck AS, based in Skotselv, Norway. The acquisition is expected to consummate in the second quarter of 2014. The value of the transaction was, however, not disclosed.

Established in 1903, Hypteck provides instrumentation and process control products to the onshore, offshore and marine industries. The company generated revenues of $38 million in 2013. Hypteck has around 68 employees, who will become part of MRC Global with completion of the acquisition. Post the transaction, Hypteck will be known as MRC HypTeck and will complement MRC Global's acquisition of MRC Teamtrade AS.

MRC Teamtrade became part of MRC Global through the acquisition of Stream AS in January this year. Stream is a distributor of pipe, valve and fittings (PVF) and also deals in flow-control products, solutions and services, basically to the offshore oil and gas industry on the Norwegian Continental Shelf.

With employee strength of over 470, Stream had estimated revenues of around $273 million (Norwegian Kroner 1.68 billion) in 2013. The acquisition was funded through MRC Global's existing credit facilities.

With inclusion of these two Norwegian companies, MRC Global intends to further expand its supplier and customer base as well as promote its offshore business.

Houston, TX-based MRC Global is one of the leading distributors of pipes, valves and fittings (PVF) and related products and services to the energy industry. Its products are used across upstream, midstream and downstream sectors of the oil and gas industry. 

With a market capitalization of $2.9 billion, MRC Global holds a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the industry include Boardwalk Pipeline Partners, LP BWP, Delek Logistics Partners, LP DKL and Targa Resources Partners LP NGLS. All of these companies sport a Zacks Rank #1 (Strong Buy).

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