MRC Global Inc. , Houston, (NYSE: MRC) plans to acquire the majority of the operating assets of Cherokee, Okla.-based Chaparral Supply LLC , a subsidiary of SandRidge Energy Inc. , Oklahoma City, (NYSE: SD) for an undisclosed price.
Chaparral Supply provides pipe, valve and fitting products and oilfield supplies to its parent organization, SandRidge Energy. MRC plans to merge Chaparral's employees and certain inventories and other assets with the company's existing Alva, Oklahoma service location.
Additionally, as part of the acquisition, MRC and SandRidge Energy have agreed to enter into a supply agreement whereby MRC will serve as the primary pipe, valve and fitting product and oilfield supply distributor to SandRidge's operations in Oklahoma and Kansas.
"We are very pleased with the confidence that SandRidge Energy has shown in MRC," says, MRC chief operating officer, North America, James Underhill . "We look forward to providing value to their operations through our global purchasing strength, efficient processes and local service capabilities in the rapidly growing and strategically important Mississippian lime formation."
The deal is expected to be completed in June.