Today’s announcement that MRC Global (NYSE: MRC) has agreed to acquire Norway based Stream AS (“Stream”) for approximately $260 million marks another successful transatlantic oil & gas and industrial distribution deal for Baird, an employee-owned, international financial services firm. Stream is the leading 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), the world’s largest offshore market. Baird acted as the exclusive financial advisor to Stream and its two private equity owners, HitecVision AS and Converto Capital, on the transaction. The transaction is subject to customary closing conditions.
Baird’s international deal team was led by Vinay Ghai, Managing Director, in Europe and Tom Lange, Managing Director, in the U.S.
“This transaction illustrates the growing internationalization and consolidation within the oil & gas industry,” said Ghai. “Both corporates and the private equity community continue to be attracted by the long-term secular market dynamics particularly within the offshore arena. We believe this will be a strong partnership between MRC Global and Stream, and Baird is pleased to have helped in the process.”
Lange added, “As the leading PVF distributor and provider of flow control products, solutions and services to the offshore oil & gas industry on the NCS, Stream is a platform for growth for MRC Global in the world's largest offshore market.”
The transaction underscores Baird’s global reach and expertise in industrial distribution and the oil & gas sector, representing Baird’s fifth oil & gas related M&A transaction over the last year. Baird’s relevant sector credentials include:
- Sale of PMC Group AB's Norwegian subsidiary, Servi, to Ferd;
- Sale of Geveke B.V. to Nikkiso Co. Ltd;
- Sale of Vector Technology Group AS to the Freudenberg Group;
- Acquisition of GustoMSC from SBM Offshore N.V. by Parcom Capital; and
- Sale of NES Global Talent to AEA Investors
This deal also represents Baird’s strengthening track record in the Nordic region, as the transaction is the firm’s fourth Nordic M&A deal in just over a year. Other deals include: the sale of PMC Group AB's Norwegian subsidiary, Servi, to Ferd; the sale of Vector Technology Group AS to the Freudenberg Group; and the sale of Helly Hansen to Ontario Teachers’ Pension Plan.