France’s tubular solutions provider Vallourec has entered into a definitive agreement with Mattr to acquire 100% of the shares in its subsidiary, Thermotite do Brasil, a provider of thermal insulation pipe coating services for the offshore oil and gas industry.
Vallourec is acquiring Thermotite do Brasil for $17.5 million, with customary price adjustments including working capital.
Thermotite’s facility is located at Vallourec’s coating services site in Serra, Espírito Santo, Brazil. According to Vallourec, this acquisition strengthens the company’s capabilities, particularly in offshore and deepwater markets.
“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,” said Philippe Guillemot , Chairman of the Board of Directors, and Chief Executive Officer of Vallourec.
“By strengthening our presence in Brazil, a key market for the offshore industry, we are well-positioned to capitalize on the growing demand for premium tubular solutions both in the domestic market and in high-value export markets.”
Vallourec’s acquisition of 100% of Thermotite do Brasil’s shares is pending regulatory approvals and customary closing conditions. Vallourec said it plans to reduce debt further in the second half of 2024 and begin shareholder returns by 2025.
In terms of Vallourec ’s recent activities in Brazil, in June, the company was hired by Brazil’s energy giant Petrobras to supply tubes and services for offshore development wells, mostly located in the Campos pre-salt basin.