Robert Workman, President and CEO of NOW Inc., commented, “The addition of Odessa Pumps and Equipment not only offers DistributionNOW the ability to expand our products and services offerings to our key energy customers in areas where both firms currently operate, but also gives us the opportunity to leverage Odessa Pumps’ business model, expertise and manufacturer relationships within the extensive DNOW infrastructure not currently serviced by Odessa Pumps to grow our customer participation organically. In addition to the results we can deliver by working together in the energy sector, both company’s downstream, industrial and municipal businesses will benefit from the strengths of each firm.”
Founded in 1980, Odessa Pumps and Equipment is a leading distributor of pumps and equipment for the Oil & Gas and Municipal and Wastewater markets. The company manages a distribution business of approximately 13 sales and operations locations across Texas, New Mexico and Oklahoma. Odessa employs approximately 300 employees.
After trading above $36 in the weeks following its spinoff, DNOW has moved steadily downward to Monday’s close of $19.19, its lowest closing price ever. The company reported a first quarter loss as its energy customers struggle amidst low oil prices.
Disclosure: The author holds no position in any stock mentioned