Serimax Snapped Up by Vallourec in $197MM Deal
Serimax has been acquired by Vallourec, world leader in premium tubular solutions, in a €150 million ($197.73MM) deal.
The acquisition complements Vallourec's existing line pipe operations and the deal means the two companies will be able to offer combined pipe manufacturing and welding services.
Serimax is a €150 million plus turnover business which provides full service welding and fabrication for marine pipelines, spoolbase and landlines. It employs 800 staff, has welding workshop facilities in the US, France, UK and Malaysia, and last year completed 50 projects in more than 20 countries.
Serimax will continue as an autonomous business unit within the Vallourec Group and will continue to provide welding for all types of pipes and clients.
Serimax chief executive officer, David Williams, said the deal brings a multitude of benefits to the welding group and its clients. He said, "It is business as usual for Serimax and we will continue with our current growth strategy and organizational structure. Our existing customers can be assured that this deal offers many advantages to their own business and we will be able to improve on the level of service, skills and technology that they currently receive.
"Vallourec has built its success with a strong focus on technology which aligns with our own commitment to research and development. Combining both company's technologies will make a real difference to the market and offers us exciting opportunities to think differently about how we package solutions for clients.
"Vallourec's strong corporate culture for services and solutions along with an outstanding commitment to innovation is a perfect fit for us to continue developing our vision of being the international full services welding partner of choice. We will benefit from Vallourec’s multi-industry footprint while its substantial resources will support our growth and diversification plans."
Philippe Crouzet, Chairman of Vallourec Management Board, stated, "Serimax's welding expertise is a strong fit with our strategy of providing premium tubular solutions for the oil and gas industry.
"Recognised for its experience in major international line pipe projects, Serimax has a reputation for quality, service and innovation and a strong commitment to R&D. Its welding services combined with our line pipe offering for deep offshore fields will broaden Vallourec's global solutions offer."
The purchase price amounts to €150 million. The acquisition which is subject to customary regulatory approvals will be financed out of available liquidity. The main vendors of Serimax are Lime Rock Partners and 4D Global Energy Development Capital Fund who purchased Serimer DASA from Stolt Offshore in 2004.