Man Industries (India) Limited has announced a significant acquisition through its wholly owned subsidiary, Man International Steel Industries Company (MISIC), based in Saudi Arabia. The company has acquired 100% of National Pipe Company Limited (NPC), a well-established manufacturer of large-diameter carbon steel line pipes in the Kingdom of Saudi Arabia, for a total consideration of USD 102 million, approximately ₹1,000 crores.
This acquisition represents a strategic move for Man Industries, as NPC possesses a robust balance sheet with cash and liquid assets amounting to USD 83 million. These assets include cash and bank balances of USD 38 million, trade receivables of USD 13 million, and finished goods inventory valued at USD 32 million. Additionally, NPC’s net worth stands at USD 158.6 million, showcasing the strong asset base of the acquisition.
NPC is a profit-making, debt-free entity with an established order book, including active orders from Saudi Aramco and other prominent clients. The company is fully certified with API 5L and API 2B certifications and has been an approved vendor for Saudi Aramco for over two decades. The acquisition was completed at a valuation of 1.5x EV/EBITDA, significantly lower than the prevailing Saudi listed peer valuations of 7x–9x EV/EBITDA.
The acquisition provides Man Industries with immediate access to NPC’s long-standing customer relationships, including Saudi Aramco, Saudi Water Authority, and Qatar Petroleum, among others. This positions Man Industries to expand its revenue base and order pipeline within the GCC region.
Furthermore, Man Industries has strategically reallocated its earlier announced greenfield investment at Dammam Industrial City No. 3 to develop a dedicated 3LP (Three-Layer Polyethylene) External and Internal Coating Plant. This facility will cater to the growing demand for coated pipeline solutions in the Kingdom.
The acquisition aligns with Saudi Arabia’s Vision 2030, positioning Man Industries at the forefront of the country’s infrastructure development. The company aims to leverage NPC’s capacity and scale, combined with its existing operations in India, to become a leading pipeline solutions provider across the Middle East.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).