MRC Global sells Canadian unit to Emco Corporation

Published 17/03/2025, 12:06
MRC Global sells Canadian unit to Emco Corporation

In a strategic move, MRC Global Inc. has sold its Canadian operations to Emco Corporation, a development disclosed in a recent 8-K filing with the U.S. Securities and Exchange Commission. The transaction took place on Thursday, involving MRC Global’s subsidiary, MRC Global (Canada) ULC. The company, with a market capitalization of approximately $990 million, maintains a strong financial position with liquid assets exceeding short-term obligations, as indicated by a healthy current ratio of 1.81.

This divestiture was announced alongside MRC Global’s financial results for the fourth quarter and full year ended December 31, 2024. The earnings call, held on Thursday, provided stakeholders with an opportunity to review the company’s performance and future outlook. According to InvestingPro data, the company generated $175 million in EBITDA over the last twelve months, demonstrating solid operational performance. Analysts remain optimistic, with forecasts indicating continued profitability for the coming year.

MRC Global, headquartered in Houston, Texas, is a distributor of pipes, valves, fittings, and related products and services to the energy sector. The sale of its Canadian operations is part of the company’s larger strategy to optimize its portfolio and focus on core businesses.

The details of the financial terms have not been disclosed. However, the transaction is significant as it marks MRC Global’s exit from the Canadian market and a shift in its operational footprint.

The company’s financial condition and results of operations, as well as the transcript from the earnings call, have been filed with the SEC and are incorporated by reference into the 8-K filing. It should be noted that the information provided in the 8-K filing is not considered "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any other filings unless expressly stated.

MRC Global’s common stock is traded on the New York Stock Exchange under the ticker symbol (NYSE:MRC), currently trading at $11.50. InvestingPro analysis suggests the stock is currently undervalued, with a strong free cash flow yield being one of several positive indicators. The company, formerly known as McJunkin Red Man Holding Corp, operates under Delaware’s jurisdiction with a fiscal year ending on December 31. For deeper insights into MRC Global’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

This news is based on the latest 8-K filing by MRC Global Inc. with the Securities and Exchange Commission, which serves as the primary source of information for this article.

In other recent news, MRC Global Inc. reported its fourth quarter earnings, which did not meet analyst expectations. The company posted a loss of $0.14 per share, whereas analysts had anticipated a profit of $0.10 per share. Revenue for the quarter was $664 million, falling short of the expected $734.1 million and marking a 10% decrease year-over-year. Despite this earnings miss, MRC Global announced a new joint venture with Frisbie Measurement Services, forming IMTEC Services to provide integrated smart meter technical services to gas utilities customers. For the full year 2024, MRC Global reported sales of $3.01 billion and net income from continuing operations of $78 million, or $0.57 per diluted share. The company achieved $268 million in operating cash flow from continuing operations, the highest since 2015. CEO Rob Saltiel expressed optimism for 2025, forecasting revenue growth in the low to high single digits across all business segments. MRC Global also plans to generate at least $100 million in operating cash flow and has announced a $125 million share buyback program.

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