HOUSTON, Jan. 29, 2016 /PRNewswire/ -- Bourland and Leverich Supply and Pipeco Services, two subsidiaries of Sumitomo Corporation providing Oil Country Tubular Goods (OCTG) products and services to the upstream markets in the United States, have announced their intent to merge. The new company will be called, "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 6 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. Tait added, "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. With the full support of our parent company, Sumitomo Corporation, 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, stating that "We are very excited that these two leaders in the Sumitomo family have decided to merge as one. 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."
About B&L Supply
Bourland and Leverich is a leading provider of Oil Country Tubular Goods (OCTG) products to the upstream conventional and unconventional onshore drilling market in the United States since 1935. Headquartered in Houston, TX, the company also has offices in LA, OK, CO and PA.
About Pipeco Services
Pipeco Services is a distributor of Oil Country Tubular Goods (OCTG) products founded in 1982 with headquarters in Houston, TX and offices in OK and PA.
About Sumitomo Corporation
Sumitomo Corporation is a leading global trading company, with 116 locations in 65 countries and 24 locations in Japan. The entire Sumitomo Corporation Group consists of nearly 800 companies and more than 70,000 personnel. The SC business is continuously expanding into a diverse range of products and services. Its core business units are Metal Products; Transportation &Construction Systems; Environment & Infrastructure; Media, Network, Lifestyle Related Goods & Services; and Mineral Resources, Energy, Chemical & Electronics.
SOURCE Sumitomo Corporation