NOW Inc. (DNOW) entered into an agreement to purchase Challenger Industries Inc. in an all-cash transaction, NOW said Aug. 4. The amount was not disclosed.
The transaction remains subject to regulatory approval and other conditions. Challenger supplies pipe, valves and fittings for the downstream, midstream and upstream energy markets. The company’s distribution business has about 11 sales and operations locations in the U.S. with about 160 employees.
“With a majority of their revenues tied to the provision of pipe, valves, fittings and flanges to downstream and midstream customers across several areas of the U.S., the Challenger Industries acquisition will expand our capabilities in those markets in addition to strengthening our ability to service upstream customers in the Rockies. We look forward to welcoming the Challenger employees to our team,” said Robert Workman, president and CEO of NOW.
NOW Inc. is a Houston-based distribution business.
Devon Energy CEO Dave Hager said the industry in general, Devon included, has not delivered acceptable returns to investors.
As part of creating value, Parsley Energy is also divesting what it called “tail-end inventory” in the Southern Midland Basin for about $170 million.