Vallourec to acquire 100% of shares in pipeline coating supplier Thermotite do Brasil

Vallourec has signed a definitive agreement to acquire 100% of the shares of its subsidiary Thermotite do Brasil Ltda from Mattr (MATR.TO) for $17.5 million on a cash-free, debt-free basis, subject to customary price adjustments.

Thermotite do Brasil is a provider of thermal insulation pipeline coating services specialized in the offshore oil and gas industry. Vallourec is a provider of premium seamless pipe solutions.

Thermotite’s facility is located within Vallourec’s existing coating services site in Serra, Esperito Santo, Brazil. The acquisition will support Vallourec’s premiumization strategy, strengthening its position across the industry value chain through an integrated industrial setup. It will enhance its technological expertise, particularly in the offshore and deepwater markets.

Philippe Guillemot, Chairman and CEO of Vallourec, said: "This acquisition is another step in our strategy to provide high-quality 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 even more complete and tailored pipeline solutions. By strengthening our position in Brazil, a key market for the offshore industry, we are well positioned to capitalize on the growing demand for high-quality tubular solutions both in the domestic market and in high-value export markets."

Under the transaction, Vallourec will acquire 100% of Thermotite do Brazil, subject to customary closing conditions, including regulatory approvals. Vallourec reiterates its previously stated goal of further deleveraging in the second half of 2024 and to start delivering shareholder returns by 2025 at the latest.