MRC Global To Acquire Assets Of Chaparral Supply, A Subsidiary Of SandRidge Energy; Acquisition includes 5-year supply agreement with SandRidge Energy
MRC Global Inc. (NYSE: MRC) today announced that it has signed an agreement to acquire the majority of the operating assets of Cherokee, Oklahoma based Chaparral Supply, LLC, a wholly owned subsidiary of SandRidge Energy, Inc (NYSE: SD). Chaparral Supply provides pipe, valve and fitting (PVF) products and oilfield supplies to its parent organization, SandRidge Energy. MRC plans to merge Chaparral's employees and certain inventories and other assets with the Company's existing Alva, Oklahoma service location. The acquisition is subject to customary closing conditions and is expected to be completed in June 2012.
Additionally, as part of the acquisition, MRC and SandRidge Energy have agreed to enter into a supply agreement whereby MRC will serve as the primary pipe, valve and fitting (PVF) product and oilfield supply distributor to SandRidge's operations in Oklahoma and Kansas.
"We are very pleased with the confidence that SandRidge Energy has shown in MRC," stated MRC COO – North America James Underhill. "We look forward to providing value to their operations through our global purchasing strength, efficient processes and local service capabilities in the rapidly growing and strategically important Mississippian Lime formation."
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