MRC Global Sells U.S. OCTG Business to Sooner Pipe

CEO: $48 million divestiture helps MRC "reduce exposure to upstream drilling volatility."

Pipes, valves and fittings distributor MRC Global Inc. (NYSE: MRC), Houston, TX, has agreed to sell its U.S. OCTG (oil country tubular goods) business to Sooner Pipe LLC, Houston, TX, a subsidiary of Marubeni-Itochu Tubulars America Inc., for $48 million. MRC Global's U.S. OCTG sales were $305 million in 2015.

"The divestiture of our OCTG product line is the culmination of our strategy to reduce our exposure to upstream drilling volatility and to focus on growing our higher margin product lines, particularly our valve, valve automation and instrumentation business," said Andrew Lane, MRC Global's president and chief executive officer. "We remain committed to our line pipe business as it has applications across each of the upstream, midstream and downstream end markets."

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