- DNOW Inc. (DNOW) and MRC Global Inc. (MRC, Financial) announce an all-stock merger valued at approximately $1.5 billion.
- The merger is expected to generate $70 million in annual cost synergies within three years.
- The combined company will have an enterprise value of approximately $3.0 billion.
DNOW Inc. (DNOW) and MRC Global Inc. (MRC) have reached a definitive merger agreement in an all-stock transaction valued at approximately $1.5 billion, including MRC Global's net debt. The merger aims to create a premier energy and industrial solutions provider by combining the complementary portfolios of both companies.
Under the agreement, MRC Global shareholders will receive 0.9489 shares of DNOW common stock for each share of MRC Global common stock, which represents an 8.5% premium to MRC Global's 30-day volume-weighted average price of $12.77 as of June 25, 2025. Post-merger, DNOW and MRC Global shareholders will own approximately 56.5% and 43.5% of the new entity, respectively.
The merger is anticipated to drive significant synergy benefits, with $70 million in annual cost synergies expected within three years of closing. It is also projected to be accretive to adjusted earnings per share in the first year following the transaction completion.
The combined company's enterprise value is estimated at $3.0 billion, and it will operate over 350 service and distribution locations across more than 20 countries. The expanded footprint and diversified business portfolio aim to enhance customer service and growth opportunities across energy, gas utilities, and industrial sectors.
David Cherechinsky, President and CEO of DNOW, and Rob Saltiel, President and CEO of MRC Global, have expressed optimism about the integration and future prospects of the combined company, highlighting a shared commitment to operational excellence and enhanced customer value.
The transaction has received unanimous approval from both companies' boards of directors and is expected to close in the fourth quarter of 2025, pending shareholder and regulatory approvals.
