DNOW to acquire MRC Global in $1.5 billion all-stock deal
Energy and industrial products supplier DNOW said it would buy MRC Global MRC.N in an all-stock deal valued at $1.5 billion, including debt. The combined company will operate over 350 service and distribution locations in more than 20 countries, serving customers across the upstream, midstream, downstream, gas utility, and broader industrial sectors.
The deal adds to the ongoing consolidation in the oilfield services and industrial supply sector, as companies combine to expand geographic reach, broaden product offerings and improve operational efficiency.
MRC Global is a distributor of pipe, valves, fittings, and automation products, primarily serving the energy, gas utility and industrial markets.
Under the terms of the deal, MRC Global shareholders will receive 0.9489 of DNOW shares for each MRC share, giving the deal per share value of $13.85 and representing a premium of 6.8%, according to Reuters calculation.
MRC shares rose 14% in extended trade, while DNOW also gained 1.9%.
The deal is expected to close in the fourth quarter of 2025, upon which, DNOW shareholders will own about 56.5% of the new company, while MRC shareholders will hold 43.5%.
The companies expect the deal to generate $70 million in annual cost savings within three years, driven by supply chain efficiencies, systems integration and public company cost savings.
The deal is also expected to be accretive to adjusted earnings per share in the first year after closing.
DNOW CEO David Cherechinsky will lead the combined company, which will continue to operate under the DNOW name and remain headquartered in Houston, Texas.
Two MRC Global board members will join DNOW's board, expanding it to 10 directors.
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