Man Industries Acquires Saudi Arabia's National Pipe Company for USD 102 Million
MAN Industries acquired National Pipe Company (NPC) in Saudi Arabia for USD 102 Million via its subsidiary MISIC. NPC has 430,000 MTPA capacity and is debt-free with USD 83 million in liquid assets. The acquisition is EPS-accretive from Day 1 and strategically positions MAN Industries in the Middle East's infrastructure supercycle.
The acquisition of a significant manufacturing entity in a strategic region like Saudi Arabia, coupled with its attractive valuation and immediate earnings accretion, will have a substantial impact on the company's growth and market position.
The acquisition is at an attractive valuation, EPS-accretive from Day 1, and strategically positions the company for growth in a key market, indicating a positive outlook.
MAN Industries (India) Limited has announced that its wholly owned subsidiary, MAN International Steel Industries Company (MISIC) in Saudi Arabia, has acquired 100% of National Pipe Company Limited (NPC), a leading API-certified large-diameter carbon steel line pipe manufacturer in Saudi Arabia. The total cash consideration for the acquisition is USD 102 Million (approximately ₹1,000 Crores).
NPC is a debt-free company with a strong balance sheet, including cash and liquid assets of USD 83 million and a net worth of USD 158.63 million. It is a profit-making entity with an established order book from clients like Saudi Aramco and holds API 5L and API 2B certifications. The acquisition was completed at an attractive valuation of 1.5x EV/EBITDA and 0.7x P/B, which is significantly lower than prevailing Saudi peer valuations.
With this acquisition, MAN Industries gains a significant manufacturing and coating platform in the Kingdom of Saudi Arabia, aligning with Saudi Vision 2030. The company will reallocate its earlier greenfield investment to develop a dedicated 3LP External and Internal Coating Plant in Dammam. This strategic move creates integrated Saudi operations and provides access to marquee customers in the Middle East.
Mr. Nikhil Mansukhani, Managing Director of MAN Industries (India) Limited, stated that this acquisition is a defining moment, yielding a payback in approximately 1.5 years and accelerating the company's Saudi platform. NPC has an annual installed capacity of 430,000 MTPA, comprising HSAW pipes (20" – 88") and LSAW pipes (24" – 60"). At the time of acquisition, NPC carried an order position of USD 120 Million.
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Man Industries (India) Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Man Industries (India) Limited. Read the original for the full detail.