Stout announced that its client, City Pipe & Supply Corp. (“City Pipe”), has been acquired by Russel Metals Inc. (TSX:RUS). Stout served as exclusive financial advisor to City Pipe in connection with this transaction.
Founded in 1942, City Pipe is an industry leader in supplying pipe, valves, and fittings (PVF) to oil and gas companies in the Permian, Eagle Ford, Granite Wash, Barnett, and Haynesville basins, which collectively represent approximately 60% of the active rigs in the United States. City Pipe operates five distribution centers located in Odessa, TX, Big Spring, TX, Weatherford, TX, and Longview, TX, and Hobbs, NM. City Pipe had operated under an ESOP ownership structure since 2007.
“We are very pleased with the outcome of this transaction and the assistance provided by Stout in finding the ideal partner for City Pipe,” said City Pipe President, Brett Lossin. “The team and I look forward to operating under our new partnership with Russel Metals, which will enable growth benefiting both our employees and customers.”
“City Pipe has built strong brand recognition through its long, rich history of supplying quality PVF products and services to blue-chip energy companies,” said Stout Managing Director Todd Parsapour. “It was a pleasure to work with the City Pipe team on this significant transaction, which produced an exceptional result and positions City Pipe to continue its impressive growth.”
Stout’s Daniel Sullivan, Nickolas Dreps, and Conrad Hahne assisted in executing the deal.
Holland & Knight, LLP acted as legal counsel to City Pipe.
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