Vancouver-based Northwest Pipe Co. said Monday it has sold substantially all of its oil country tubular goods assets to Centric Pipe LLC, an affiliate of Dallas-based supplier SB International Inc., for a purchase price of $42.7 million.
Northwest Pipe, a manufacturer of steel pipe, will retain ownership of its real property in Houston, which it will lease to Centric Pipe. Centric Pipe will have the option to purchase that real property at a later date.
“This divestiture will enable us to increase our focus on growing our core water transmission business, while placing these assets in the hands of an experienced (oil country tubular goods) company with global relationships,” Scott Montross, Northwest Pipe president and CEO, said in a news release. “This announcement in no way affects the company’s commitment to and continued investment in our Atchison, Kan., line pipe facility which is on schedule to complete a major expansion project.”