Three months after announcing an agreed-to deal, industrial pipe, valve and fittings distributors DNOW and MRC Global have made it official.

DNOW announced Nov. 6 that it has completed its acquisition of MRC, effectively combining the two Houston-based companies that are critical supply partners to the U.S. oilfield and energy markets.

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The transaction is valued at $1.5 billion and results in a company with an enterprise value of about $3 billion.

In mid-October, the company DNOW announced the executive team for the combined company, led by DNOW President and CEO David Cherechinsky.

“This is a transformative milestone for our company, shareholders, customers and team members. The new DNOW brings together unparalleled access to industry-leading energy, gas utility and industrial products, service and solutions from both companies to serve a broader and more diversified mix of customers,” Cherechinsky said in a news release. “This combination further enhances DNOW’s earnings durability, cash flow, financial position and ability to capitalize on growth opportunities across a broad range of attractive growth sectors. With the MRC Global and DNOW teams united as one, we are focused on completing a seamless transition and moving forward as a premier choice for our customers’ routine and most complex requirements.”

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As shared in MDM’s coverage of the original deal announcement, here’s what the new DNOW looks like today:

• Combined 2024 revenues of approximately $5.3 billion ($2.9B for MRC and $2.4B for DNOW). About 82% of that revenue is in the United States (245 total locations; 4% from Canada (40 locations) and 14% from international (80 locations).
• MRC and DNOW were respectively Nos. 11 and 13 on MDM’s 2025 Top Distributors List for Industrial Supplies and Nos. 3 and 4 for Industrial PVF. DNOW was also No. 5 for Fluid Power and No. 20 for MRO.
• $364 million in combined annual EBITDA ($183M on 7.6% margin for DNOW and $181M on 6.1% margin for MRC)
• 5,000 combined employees (about 2,500 from DNOW and MRC each)
• A footprint of more than 350 service and distribution locations (197 for MRC and 165 for DNOW) across 20+ countries, serving a mix of customers in the energy and industrial sectors across upstream, midstream, downstream, gas utility and industrial customers. This includes 235 service locations and 10 distribution/super centers
• The new DNOW will have a “core” plan to serve a broader mix of customers in the construction and maintenance of essential energy process, production and transmission infrastructure, along with enhanced opportunities in alternative energy, AI infrastructure, electrification, mining and other industrial markets
• They expect to generate $70 million of annual cost synergies within three years of closing through public company costs, corporate and IT systems and operational and supply chain efficiencies
• Substantial cash flow generation from organic investments and continued strategic acquisitions
• A balance sheet that includes over $200 million of cash and a $500 million revolving credit facility, and DNOW has secured commitments to expand that credit facility by $250 million at deal close
• The combined company will do business as DNOW and trade as DNOW on the New York Stock Exchange, but both brands will continue following deal close and remain headquartered in Houston

Q3 Results

A day before announcing the deal completion, both DNOW and MRC reported their 2025 third quarter financial results. While they included similar top-line figures, sales were trending up for DNOW and down for MRC Global.

DNOW 3Q Results

At DNOW, 3Q sales of $634 million were up approximately 4.6% year-over-year and up 1% sequentially. Sales in the U.S. (83% of total) were up 9% year-over-year, while Canada and International were down 18% and 8%, respectively.

Operating profit of $33 million on 5.2% margin was an improvement over the $23 million and 3.8% of a year earlier. Gross margin of 22.9% was up 60 basis points year-over-year and flat sequentially. Net profit of $25 million topped the $12 million of a year earlier and was flat with 2Q25, while EBITDA was $51 million on 8.0% margin.

MRC 3Q Results

At MRC, sales of $678 million were down 12% year-over-year and down 15% since Q2. All sectors experienced a decline, primarily driven by the negative impact of operational challenges related to the company’s ERP system implementation. Year-over-year sales in the company’s Downstream, Industrial and Energy Transition (DIET) sector declined 27% while sales in Production and Transmission Infrastructure (PTI) declined 22%, and the Gas utilities sector declined $ 1 million (less than 1%).  Sequentially, sales were down in all sectors, led by PTI which declined 32%.

MRC’s 3Q U.S. sales (81% of total) fell 15% year-over-year and were down 16% sequentially. Year-over-year US sales in DIET were down 19%, PTI was down 18% and Gas Utilities was up 2%. International sales increased 1% year-over-year but declined 9% sequentially.

MRC’s 3Q gross margin of 18.4% was down 200 basis points year-over-year. Operating loss of $3 million trailed the $37 million, 4.7% margin of a year earlier. EBITDA of $36 million on 5.3% margin trailed the $47 million, 6.1% of a year earlier.