HitecVision sells Stream for $260m

The transaction, which is expected to close in January 2014, is subject to customary closing conditions. Global pipe, valve and fittings provider MRC will wholly acquire Stream for $260m in enterprise value including the assumption of debt. MRC expects to fund the acquisition via its existing credit facilities.

The acquisition is designed to complement Texas-based MRC's existing UK-based MRC Transmark valve business, as well as its stream energy piping business.

HitecVision and Converto acquired Stream in 2010 via the public-to-private acquisition of Bjørge. Following the delisting, a three-way demerger of Bjørge was carried out and three independent companies were established at the start of 2011: Stream, Align and Naxys. Naxys was sold to GE in 2012, while Align remains under HitecVision's ownership.

During HitecVision and Converto's holding period, Stream's revenue increased by around 17% while EBITDA grew by 28%. The strategy included a number of add-on acquisitions.

Company
Headquartered in Norway, Stream is a pipe, valve and fittings (PVF) distributor and provider of flow control products, solutions and services to the offshore oil & gas industry on the Norwegian continental shelf (NCS).

With seven facilities servicing the NCS and one facility serving the chemical industry in Germany, its estimated turnover in 2013 is $273m. The company operates through three divisions: Energy Piping, Solberg & Andersen and TeamTrade.

People
Andrew Lane is MRC Global's chairman, president and CEO. Steinar Aasland is the CEO of Stream.

Advisers
Vendor – Baird, Vinay Ghai, Tom Lange (Corporate finance).

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