DNOW Inc said on Tuesday that it had entered into an agreement to acquire Whitco Supply LLC in an all-cash deal.
Established in 2003 by the Dawes family and based in Broussard, LA, Whitco Supply LLC provides energy products and solutions to the midstream market as well as to the broader energy sectors.
The transaction is subject to regulatory approvals and other customary closing conditions.
For the time being, the two companies will remain independent and operate separately, DNOW Inc said.
“The acquisition of Whitco Supply aligns with our strategic objectives to diversify end-markets and is the result of our patient, disciplined approach to capital allocation. This transaction enhances our earnings and free cash flow profile and strengthens our ability to increase shareholder value,” David Cherechinsky, President and Chief Executive Officer of DNOW Inc, said in a press release.
“Whitco Supply brings a talented team with extensive product expertise that will enable us to support an expanded set of customers in the midstream and other markets. We look forward to bringing together our two highly complementary businesses and creating greater opportunities for our customers, employees and suppliers,” the CEO added.
Stock Performance
The shares of DNOW Inc (DNOW) closed 3.30% ($0.33) lower at $9.66 in New York on Monday, as they extended the loss from the previous market session.
Pre-market on Tuesday, the shares were up 3.52% to $10.00.
The company’s total market cap now stands at $1.027 billion.
The shares of DNOW Inc (DNOW) have retreated 14.66% so far this year, following another 10.87% loss in 2023.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
