TPi October 2011

US firm to acquire Australian stainless pipe company McJunkin Red Man Corporation (MRC) has signed an agreement to acquire Stainless Pipe and Fittings Australia Pty Ltd (SPF), as part of its strategic vision to be the world’s premier pipe, valve and fitting (PVF) distribution company to the energy and industrial markets. SPF will operate as MRC SPF. The acquisition will enhance MRC’s international project capabilities creating a complete PVF project supply capability globally. SPF, founded in 1996, is a major stockist of stainless steel piping products in the southern hemisphere. Headquartered in Perth, Western Australia, the company has seven locations across Australia as well as Korea, Italy, UK and United Arab Emirates. SPF is a project supply specialist with proven capabilities supplying the oil and gas, mining and mineral processing, chemical and petrochemical, and water treatment and desalination industries. SPF’s 40,000m 2 stockholding facility in Perth will become MRC’s premier pipe, pipe fittings and flange (PFF) stocking and distribution centre for Australasia. This facility is equipped with state-of-the-art materials handling facilities including the ability to facilitate project laydowns and provide bulk supply provisions. Complementing this Perth facility are two additional stocking locations in Australia as well as a strategically placed stockholding in the Jebel Ali Free Zone, UAE, and in the United Kingdom. Acquiring SPF would increase MRC’s global PFF stockholding in stainless steel to a value in excess of US$50mn, with global stainless PFF sales of more than US$300mn. The US$4bn MRC group currently has over 400 global service locations and US$850mn dollars worth of PVF stock located around the globe. The acquisition would complement MRC’s 2009 purchase of Transmark Fcx (MRC Transmark), the leading valve distributor in the eastern hemisphere. The synergies between SPF and MRC Transmark would create value for both companies providing a complete PVF capability in the eastern hemisphere. Andrew Lane, chairman, president and chief executive officer commented, “This acquisition furthers our vision to be the world’s premier PVF distribution company to the energy and industrial markets. SPF’s PFF capabilities would allow MRC to expand on our valve platform to have a complete global PVF supply capability. We are excited to expand our presence in Australia and with major EPC projects globally. We are also very pleased to be adding Graham Yarker and Jeff Nicholas to the MRC management team and all of SPF’s 145 employees to MRC on the closing of this acquisition.”

Imigrantes Exposicões São Paulo, Brazil 4 – 6 October 2011 6th International Trade Fair for Pipes, Valves, Fittings and Components 2011

2011 IV Feira Internacional de Bombas, Motobombas eAcessórios IV InternationalPumps,Motopumps&AccessoriesTradeShow

IVFeira Internacional deVálvulas Industriais eAcessórios IV International IndustrialValves&AccessoriesTradeShow

2011

•Drawing andRollingMetals •Boilermaking •Forging •Machining IVFeira IndustrialdeTecnologias emMetais IV Industrial Metalworking Fair

III Feira Industrial de Tecnologias Térmicas III Thermal Tecnologies Trade Fair

II GAS INDUSTRIAL FAIR

Supported by:

Presented by:

In cooperation with:

Organizer:

McJunkin Red Man Corporation (MRC) – USA info@mrcpvf.com www.mrcpvf.com

Messe Düsseldorf GmbH P.O. Box 10 10 06 40001 Düsseldorf Germany Phone +49/211/4560-7779/7700 Fax +49/211/4560-8529 WynhoffU@messe-duesseldorf.de WiechertC@messe-duesseldorf.de www.messe-duesseldorf.de

Stainless Pipe and Fittings – Australia info@spfa.com.au www.spfa.com.au

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October 2011 Tube Products International