Van leeuwen Pipe and Tube Group sells its activities in the USA
- Net assets Van Leeuwen USA acquired by Wilson Industries
- Continuity services Van Leeuwen USA best served by acquisition
- Van Leeuwen Pipe and Tube Group focuses on strengthening its position in Europe and Asia; goal is to be number 1 or 2
- Possible cooperation of Van Leeuwen and Wilson for petrochemical industry
ZWIJNDRECHT - the Netherlands, 8 January 2001 - The Van Leeuwen Pipe and Tube Group today announced that it has entered into a definitive agreement to sell substantially all of the net assets of the Van Leeuwen Pipe and Tube Corporation in the United States of America (USA) to Wilson Industries Inc. (Wilson), a subsidiary of Smith International Inc. [NYSE, PSX: SII]. Wilson is a leading supplier of pipes, valves and fittings in the USA. The transaction is anticipated to close at the end of January 2001, subject to regulatory approval.
The Van Leeuwen Pipe and Tube Corporation (Van Leeuwen USA) has been operating in the USA for 25 years. A recent strategy review of the board of Van Leeuwen Pipe and Tube Group showed that heavy investments in the US-market would be necessary to reach the needed economy of scale and market share. At the same time Van Leeuwen sees many possibilities for strong and profitable growth in markets in Europe and Asia, where the strategy is to further strengthen its position as a leading added value supplier. The choice was made for investing aggressively in these markets, in view of increasing consolidation in the industry, rather than in the USA. At the announcement of the acquisition Koos Breen, President and Chief Executive Officer of Van Leeuwen Pipe and Tube Group, stated: "We want to be number 1 or 2 in all selected market segments".
The subsidiary in Canada is not part of the sale and will remain part of the Van Leeuwen Pipe and Tube Group.
Van Leeuwen USA and Wilson both supply the refining and petrochemical industry. Van Leeuwen's regional network in the USA as well as its products and customer base complement the present position of Wilson in the USA. John Kennedy, President and Chief Executive Officer of Wilson said: "The combined company will provide broader geographic coverage and an expanded product and service offering to customers in the USA."
The Van Leeuwen Pipe and Tube Group and Wilson are exploring other possibilities for cooperation in the future in order to optimize their services to the international petrochemical industry in Europe, the Middle East and Asia. Starting-point in case of a cooperation is that it will not affect the independent position of Van Leeuwen.
Van Leeuwen Pipe and Tube Corporation in the USA, headquartered in Houston, employs approximately 300 people and has twelve branches in eight states. Smith International has an annual turnover of approximately 2.7 billion US$ and employs a staff of 8,500; Wilson has a staff of 1,600.
Further information can be obtained from:
Van Leeuwen Pipe and Tube Group
- Addr: PO Box 50 3330 AB ZWIJNDRECHT, Netherlands
- Tel: +31 78 6252320
- Fax: +31 78 6252027
- WWW: http://www.vanleeuwen.com
- Contact: Erik van Oosten