Pipeco Services, Bourland and Leverich Supply Intend to Merge
Bourland and Leverich Supply and Pipeco Services, two subsidiaries of Sumitomo Corp. providing oil country tubular goods (OCTG) products and services to the upstream markets in the United States intend to merge creating B&L Pipeco Services.
Both companies have a long history of excellent service to upstream customers. B&L Pipeco Services intends to differentiate itself from the competition with expanded services offerings that provide more value to customers and more avenues for mills to bring their products to market.
The new company’s combined resources will allow for customized responses for program or day to day business including more supply channels, procurement options, service offerings, and distribution locations for operators throughout the U.S. The parties anticipate a formal merger agreement to be signed by April 1 and expect the transaction to close within the next six months.
Bob Dvorak will serve as executive chairman of B&L Pipeco Services. Dvorak explained, “We have very little overlap in our customer or supplier strategies, so this merger makes perfect sense. We can now offer our customers unmatched procurement options from sourcing through delivery.”
Steve Tait will serve as president and CEO of the new company. “Our customers will work with the same contacts they always have. As a combined single entity, we cover every region in the country where there is upstream activity,” Tait said. “With the full support of our parent company, Sumitomo Corp., the economy of scale created by this merger allows us to increase our service and product offering and redefine what it means to be an OCTG distributor in the U.S.”
Nick Honda, general manager of the Tubular Group for Sumitomo Corporation of the Americas, reinforced that support. “We are very excited that these two leaders in the Sumitomo family have decided to merge as one,” he said. “The merger combines the assets of two high performing companies, including experienced leadership and highly skilled teams, and creates one company that is positioned to be an even more important partner to customers and suppliers in OCTG distribution. SCOA is supportive of new strategies in our group companies to build value for customers and suppliers and this merger is in line with these efforts.”Pipeline Supply, Supply