Houston, Texas-based, MRC Global Inc. (MRC) completes the previously announced acquisition of the operating assets of Flow Control Products, from the privately held company, Dan H. Brown Inc. The financial terms of the acquisition were not disclosed.
MRC’s plan to acquire Flow Control Products was announced in June this year, with the intention to expand its business in one of the major oil-producing regions in the United States. Flow Control has been providing its services to the energy companies in the Permian Basin since its inception in 1981. The business division provides electric and electro-hydraulic valve automation packages and related field support services to various pipelines, production facilities and plant operations.
Subsequent to the acquisition, all the 25 employees of Flow Control have been retained and will work as a part of the team under MRC. The acquired business will work as an MRC Valve Automation Center. For the purpose, MRC is in the process of expanding its Odessa based facility into an 110,000 square foot Regional Distribution Centre, which is expected to fructify in 2014.
With the expansion of the facility, MRC will reach a count of 25 global automation centers, used to provide services to the upstream production and midstream pipeline markets.
MRC is expected to release its second quarter 2013 results on Aug 1, 2013. However, with a Zacks Rank #4 (Sell) and an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of -7.32%, we are not confident about an earnings beat this quarter.
Other stocks in the industry that are performing well and are worth a watch include Mueller Water Products, Inc. (MWA) and Lincoln Electric Holdings Inc. (LECO), both carrying a Zacks Rank #1 (Strong Buy); also, Century Aluminum Co. (CENX), carries a Zacks Rank #2 (Buy).
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