A. M. Castle completes Tube Supply acquisition

PRNewswire

OAK BROOK — A. M. Castle & Co. said it has completed the acquisition of Houston-based Tube Supply, Inc., a distributor of specialty tubular and bar products for the oil and gas industry, for $165 million.

Tube Supply was founded in 1986 by Paul Sorensen and Jerry Willeford, who with the rest of the management team will remain in place. Both Tube Supply and Castle Metals Oil & Gas businesses will be led by Nick Jones, current president of Castle Metals Oil & Gas Commercial Unit.

Tube Supply has provided high quality products and services primarily to the North American oil field equipment manufacturing industry for the past 25 years. The company has the reputation of being a world-class provider of a broad range of oil field quality metals with a specific focus on the equipment and tools used in downhole completion and wellhead applications. Tube Supply had unaudited revenues of approximately $208 million for the twelve-month period ended October 31. Tube Supply operates service centers in Houston and Edmonton, Alberta and has recently completed construction of a new, 250,000-square-foot facility in Houston.

“We are very pleased to welcome the Tube Supply team to the A. M. Castle family.” said Michael Goldberg, president and CEO of A. M. Castle & Co “This transaction fits squarely within our existing oil and gas strategy and is a great long-term fit that will allow us to capitalize on the growing demand and opportunities in this sector.”

A. M. Castle was advised by Jefferies & Co.