MAN Industries has announced the acquisition of 100 per cent stake in National Pipe Company Ltd (NPC), Saudi Arabia, through its wholly owned subsidiary MAN International Steel Industries Company (MISIC). The acquisition, valued at USD 102 million, marks a major step in the company’s expansion into the Gulf region and strengthens its position in the large-diameter pipe manufacturing segment.
NPC is a debt-free, API-certified manufacturer of large-diameter carbon steel line pipes with manufacturing facilities located in Dhahran, Saudi Arabia. The company operates two pipe mills with a combined installed capacity of 430,000 MTPA and has long-standing business relationships with major clients including Saudi Aramco and other leading infrastructure and energy companies in the GCC region.
According to MAN Industries, the acquisition has been completed at a valuation of 1.5x EV/EBITDA and is expected to be earnings accretive from day one. NPC currently holds API 5L and API 2B certifications and has been an approved vendor for Saudi Aramco for over two decades.
Speaking on the development, Nikhil Mansukhani, Managing Director, MAN Industries (India) Ltd, said: “This is a defining moment in MAN’s global journey. In a single transaction, we have acquired 430,000 MTPA of API-certified capacity, a blue-chip customer base anchored by a 20-year Aramco relationship, and a debt-free balance sheet at a valuation that is a fraction of where comparable assets trade. Based on NPC’s current earnings profile and order book, we expect the investment to yield a payback in approximately 1.5 years a return profile that, alongside the strategic fit, reflects the disciplined approach we have taken to capital deployment. We are entering this market at the start of a multi-decade infrastructure supercycle, and this acquisition accelerates our Saudi platform by years, not quarters.”
The acquisition also aligns with MAN Industries’ strategy to strengthen its integrated pipeline solutions business in the Middle East. The company stated that NPC’s existing manufacturing capabilities, along with MAN’s upcoming coating facility in Dammam, will create a comprehensive line pipe manufacturing and coating platform in Saudi Arabia.