US pipe producer Northwest Pipe acquired Ameron Water Transmission Group for $38mn.
Northwest Pipe on 27 July closed on the Rancho Cucamonga, California-based supplier of engineered welded steel pressure pipe and reinforced concrete pipe.
Ameron has pipe-making operations in Tracy, California, and San Luis Río Colorado, Mexico, in addition to a protective lining facility in Brea, California.
The purchase expands the Vancouver, Washington-based company's footprint in a key water transmission pipe market and expands the company's overall product portfolio.
"The acquisition of Ameron is the next step in our multi-year transformation to grow our business into a pure-play water company," Northwest Pipe chief executive Scott Montross said.
"[It] better positions us to meet the increased demand we expect in our markets in the next few years," he added.
Ameron was formerly part of National Oilwell Varco, a supplier of equipment and services to oil and gas drillers. The company had approximately $57mn in sales in 2017.
Northwest Pipe funded the acquisition with cash on hand. The company lost $2mn on sales of $33mn in the first quarter of 2018. Second-quarter results will be released on 2 August.
Northwest Pipe produces engineered steel water and wastewater infrastructure pipe systems at plants in California, West Virginia, Oregon, Texas and Missouri.
