Houston-based oilfield products distributor DNOW is set to acquire Whitco Supply, a distributor of PVF and automation products headquartered in Broussard, LA.
The all-cash transaction gains DNOW a family-owned distributor of energy products and solutions to the midstream market and broader energy sectors. Whitco has about 230 employees across eight locations in Louisiana, Texas, New Mexico, Ohio and Pennsylvania.
Whitco Supply was founded in 2003 by the Dawes family.
“The acquisition of Whitco Supply aligns with our strategic objectives to diversify end-markets and is the result of our patient, disciplined approach to capital allocation,” DNOW President and CEO David Cherechinsky said in a Feb. 6 news release. “This transaction enhances our earnings and free cash flow profile and strengthens our ability to increase shareholder value. Whitco Supply brings a talented team with extensive product expertise that will enable us to support an expanded set of customers in the midstream and other markets.”
DNOW noted that both companies will remain independent and operate separately at this time.
DNOW has nearly 2,500 employees nationwide and internationally. Its locations provide products and solutions to exploration and production companies, midstream transmission and storage companies, refineries, chemical companies, utilities, mining, municipal water, manufacturers, engineering and construction companies as well as companies operating in the decarbonization, energy transition and renewables end markets.
The move comes after the mid-January corporate rebranding for DNOW from NOW Inc., which has primarily done via its DistributionNOW brand since spinning off from National Oilwell Varco in 2014.
On MDM’s 2023 Top Distributors Lists, DNOW was No. 19 for Industrial, No. 18 for MRO, No. 4 for Industrial PVF and No. 5 for Fluid Power.