Steel Products Prices North America

PTC Buys Boomerang, Expands into OCTG

Written by Michael Cowden

February 12, 2021

A division of PTC Alliance has acquired “substantially all” of the assets of oil country tubular goods (OCTG) producer Boomerang Tube. The subsidiary, PTC Liberty Tubulars LLC, has in addition scooped up the assets of Southern Tube LLC in Houston, the company said. Financial terms of the deal were not disclosed.

steel pipe“This acquisition brings together two industry leaders under one well financed and well supported organization. Our customers will benefit greatly from both operating and commercial synergies of the combined company,” PTC Alliance CEO Cary Hart said in a statement.

The move will see PTC Alliance – which makes drawn-over mandrel tubing, cold-drawn seamless tubing and electric resistance welded (ERW) tubing – expand its OCTG offerings.

Boomerang operates a tube mill in Liberty, Texas. The company makes both welded and seamless OCTG.

“Combining these two organizations allows increased emphasis on quality and service through shared services of a much larger organization. Our sales team can draw on much deeper resources to better service our OCTG customers,” added Kelly Hanlon, PTC Liberty vice president of sales and marketing.

The acquisition comes after Boomerang Tube laid off 150 people late last year because of rising steel costs and COVID-19 infections.

Welded OCTG is an important end-use market for hot-rolled coil. Steel Market Update’s average hot-rolled coil price stands at $1,180 per ton, an all-time high and 168% above a 2020 low, recorded in August, of $440 per ton.

The deal also comes amid rising oil prices and a rising rig count. The rig count is a leading indicator of OCTG demand.

By Michael Cowden, Michael@SteelMarketUpdate.com

 

Michael Cowden

Michael Cowden is managing editor for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.

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