Vallourec enhances its line pipe coating solutions with the acquisition of Thermotite do Brasil | World Pipelines

Oct 14, 2024

Save to read list Published by Elizabeth Corner, Senior Editor World Pipelines, Monday, 16 September 2024 09:06

Vallourec, a world leader in premium seamless tubular solutions, has entered into a definitive agreement to acquire from Mattr 100% of the shares of its subsidiary Thermotite do Brasil Ltda., a specialised provider of thermal insulation pipe coating services for the offshore oil and gas industry. The acquisition price is US$17.5 million, on a cash-free, debt-free basis, subject to customary price adjustments (including working capital).

Thermotite’s facility is located within Vallourec’s existing coating services premises in Serra, Esperito Santo State, Brazil. This acquisition will support Vallourec’s premiumisation strategy, reinforce its presence across the industry value chain with an integrated industrial set up and improve its technical expertise, notably for the offshore and particularly deepwater markets.

Philippe Guillemot, Chairman of the Board of Directors, and Chief Executive Officer declared: “This acquisition is a further step forward in our strategy to provide premium integrated solutions for the most challenging offshore projects. Thermotite’s expertise perfectly complements our existing portfolio of anti-corrosion coating solutions, allowing us to offer our customers more complete and tailored line pipe solutions. By strengthening our presence in Brazil, a key market for the offshore industry, we are well-positioned to capitalise on the growing demand for premium tubular solutions both in the domestic market and in high-value export markets.”

The transaction, under which Vallourec will acquire 100% of the shares of Thermotite do Brazil, is subject to customary closing conditions, including regulatory approvals.

Vallourec reiterates its previously stated targets to deleverage further in the second half of 2024 and to commence shareholder returns in 2025 at the latest.

World Pipelines’ Americas 2024 issue

The special Americas 2024 issue of World Pipelines reports on oil and gas pipeline activity in North America, Latin America, the Caribbean and South America. Articles cover pipeline safety and standards in the US, pipeline risk in the Americas, pipeline logistics in the Caribbean, natural gas and hydrogen learnings in the US, and technical case studies from across the region.

Read the article online at: https://www.worldpipelines.com/business-news/16092024/vallourec-enhances-its-line-pipe-coating-solutions-with-the-acquisition-of-thermotite-do-brasil/

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