Man Industries completes ₹1,000 crore Saudi acquisition to strengthen global pipe business
Sarthak Kumar
Man Industries (India) Ltd has completed the acquisition of National Pipe Company Limited (NPC), Kingdom of Saudi Arabia, through its wholly owned subsidiary Man International Steel Industries Company (MISIC), in a deal valued at around USD 102 million, or nearly ₹1,000 crore.
The company informed stock exchanges on May 21 that the board of directors took note of the completion of the transaction during its meeting held earlier in the day.
NPC is an established manufacturer of HSAW and LSAW pipes in Saudi Arabia and operates integrated manufacturing facilities located at Dhahran and Dammam. The company has an installed manufacturing capacity of around 430,000 metric tonnes per annum.
According to the filing, NPC caters to oil and gas pipelines, water transmission, infrastructure and industrial projects across the Middle East region. Its customer base includes Saudi Aramco, Saudi Water Authority (SWA), Saudi Water Partnership Company (SWPC), Water Transmission & Technologies Co. (WTTCO), KOC Kuwait, Qatar Petroleum, along with global EPC firms such as McDermott, Larsen & Toubro, Saipem, Subsea7 and Hyundai E&C.
Man Industries said NPC is a profit-making and debt-free company with ongoing business operations and a healthy order book from Aramco and other reputed customers. The filing added that NPC also maintains adequate working capital and cash balances to support future growth and project execution.
The acquisition is expected to strengthen Man Industries’ international footprint and enhance its presence in the Middle East market, particularly in infrastructure, desalination, industrial and energy-related opportunities in Saudi Arabia.
The company further stated that the acquired facility will also house an external and internal coating plant going forward to cater to rising demand for coated pipeline solutions in the Kingdom.
As per the disclosure, MISIC has acquired 100% equity stake and control in NPC through a cash transaction. The acquisition has been completed after receipt of all required regulatory and statutory approvals in Saudi Arabia and other applicable jurisdictions.