Northwest Pipe Company, a Vancouver-based manufacturer of water and wastewater infrastructure, acquired Ameron Water Transmission Group LLC Friday in a $38.3 million cash sale.
Ameron, a supplier of welded steel pressure pipe and reinforced concrete pipe, is based out of Rancho Cucamonga, Calif., and saw $57 million in net sales last year.
The acquisition means that Northwest Pipe Company can now offer bar-wrapped concrete cylinder pipe, reinforced concrete pipe and T-Lock, a proprietary PVC lining, according to a media release from the company. These additions are meant to enhance the company’s existing product portfolio, which focuses on welded steel pressure pipe for transporting water.
The largest manufacturer of welded steel pipeline systems in North America, Northwest Pipe Company is headquartered in Vancouver and has five manufacturing facilities scattered across the country.
Chief Executive Officer Scott Montross said Monday that Northwest Pipe employs around 500 people nationwide. With the addition of Ameron, the company added about 230 workers to its payroll.
“The Ameron acquisition is the consolidation of two companies that have long histories in the water transmission business and represents the opportunity for significant administrative and operational cost synergies,” Montross said. “Along with the steel pressure pipe capabilities, the acquisition brings new complementary products, concrete pressure pipe and reinforced concrete pipe, to Northwest Pipe’s existing product portfolio.”
Over the past few years, the company has been narrowing its focus to become a “pure play water company,” meaning it became a company dedicated solely to the water business.
“We had an energy tubular business that we sold the last piece of in (December) of 2017. The company then became a pure play water company,” Montross said, referring to a $37.2 million sale that ended the company’s involvement in oil and gas transport. “The addition of Ameron’s Water Transmission Group adds to our focus on the water business.”
In 2018’s first quarter, the company reported total net sales of $33.4 million, up from $29.7 million for the 2017 first quarter.
News of the acquisition broke just before the company planed to release its 2018 second quarter financial report. A teleconference to discuss the report is scheduled for 7 a.m. Friday with Montross and Chief Financial Officer Robin Gantt. A livestream of the call will be available on www.nwpipe.com. A recording will be available until Aug. 31 and can be heard by calling 1-888-566-0078, passcode 6301.
