French tubular solutions supplier Vallourec has entered into a definitive agreement to acquire Matt’s subsidiary Thermotite do Brasil, a specialized provider of thermal insulation pipe coating services for the offshore oil and gas industry.
The acquisition price is $17.5 million, on a cash-free, debt-free basis, subject to customary price adjustments, including working capital.
Thermotite’s facility is located within Vallourec’s existing coating services premises in Serra, Esperito Santo State in Brazil.
The acquisition will support Vallourec’s strategy, reinforce its presence across the industry value chain with an integrated industrial set up and improve its technical expertise, notably for the offshore and particularly deepwater markets.
“This acquisition is a further step forward in our strategy to provide premium integrated solutions for the most challenging offshore projects. Thermotite’s expertise perfectly complements our existing portfolio of anti-corrosion coating solutions, allowing us to offer our customers more complete and tailored line pipe solutions.
“By strengthening our presence in Brazil, a key market for the offshore industry, we are well-positioned to capitalize on the growing demand for premium tubular solutions both in the domestic market and in high-value export markets,” said Philippe Guillemot, Chairman of the Board of Directors, and Chief Executive Officer of Vallourec.