What is now MRC Global began as two American suppliers who were competitors in the energy industry. The McJunkin Corporation was a family-owned business founded in West Virginia nearly a century ago; and Red Man Pipe and Supply, founded in Oklahoma in 1977, was one of the largest Native American-owned businesses in the U.S. Both had experienced success providing clients with the pipes, valves and fittings (known as PVF) products that are the “backbone” of the energy industry. With the industry changing as a result of the shale revolution in the US, the two companies were well positioned to help lead the industry through these changes with additional capital and strategic assistance.
In January 2007, the owners of McJunkin Corporation turned to Goldman Sachs for a $300 million strategic investment. With an eye toward an increasingly global energy industry, the GS team also brought a big idea to the table. They proposed merging the company with Red Man Pipe and Supply to create a single, trusted, “one stop” shop that would serve the needs of the evolving global market. In October 2007, Goldman Sachs invested an additional $500 million so that the two companies could join their businesses and form the North American energy distribution leader. This was soon followed by the addition of Transmark, a British company that enabled them to truly go global.
Goldman Sachs continued to work closely with MRC Global, helping identify additional opportunities to grow the business. This included providing advice and market insight, raising capital and investing its own, and a number of strategic acquisitions, and, ultimately, taking the company public in 2012 through a $550 million initial public offering (IPO).
MRC Global is now a Fortune 500 company, and the largest global distributor of PVF products and services. With over 400 service locations and over 5,000 employees, the company is a vital link in the production chain for the entire energy industry.
Our Merchant Banking Division is the primary center for Goldman Sachs’ long term principal investing activity. The group invests in equity and credit across corporate, real estate and infrastructure strategies.