Vancouver, Washington-based Northwest Pipe Company announced Tuesday that it is in the process of exploring strategic alternatives for its Oil Country Tubular Goods (OCTG) business, which could include potential acquisitions, divestitures and joint-ventures. The Company has retained Raymond James & Associates, Inc. as financial advisor to assist in this initiative. Northwest Pipe said no formal decisions have been made and no agreements have been reached concerning the company's OCTG operations.
"The decision to evaluate options for our OCTG business follows a comprehensive review of the Company's strategy, asset base and future direction with our Board of Directors," said Scott Montross, Northwest Pipe President and CEO. "Furthermore, our long-term desire is to sharpen our focus on growing our core Water Transmission business through organic initiatives like the recent $12 million investment in our Saginaw, Texas facility as well as through acquisitions. While Northwest Pipe will assess strategic options for its OCTG operations, including the addition of downstream processing capabilities, nothing about this review alters the Company's commitment and continued investment and expansion currently taking place at our Atchison, Kansas facility, which is scheduled to be completed in the first quarter of 2014. Our most recent $15 million investment in Atchison is the culmination of over $35 million of investments that have been made at Atchison, over the last several years, to significantly enhance our long term competitive position in the Energy Tubular market. Additionally, we continue a focused and active corporate development effort regarding strategic add-on acquisitions that fit our long-term strategic plan."