NOW Inc. Announces Power Service Acquisition

NOW Inc. (NYSE:DNOW) announced today that it has entered into an
agreement to purchase Power Service, Inc., Industrial Tool & Repair,
Inc., d/b/a/ Power Service of Montana and Power Transportation LLC
(collectively, “Power Service”). Terms of the all-cash transaction,
which remains subject to customary closing conditions, including
regulatory approval, were not disclosed.

Founded in 1954, Power Service provides rotating and process equipment
engineering, design, installation, fabrication and service solutions.
Power Service distributes OEM parts including pumps, generator sets, air
compressors and blowers, and fabricates custom Lease Automatic Custody
Transfer (LACT) units, Vapor Recovery Units, ASME Code Vessels and Water
Production skids serving the Upstream, Midstream & Downstream oil and
gas markets as well as the Mining, Power Generation and General
Industrial industries. Power Service operates in 14 locations throughout
Wyoming, Colorado, Utah, Montana, North Dakota, New Mexico, Oklahoma and
Texas. Power Service employs approximately 400 employees.

Robert Workman, President and CEO of NOW Inc. noted, “We are excited
about the opportunity to add Power Service’s business to
DistributionNOW. With their established position in the Oil & Gas
turnkey tank battery solutions market, Power Service would provide a
number of attractive synergies for DNOW. Similar to our previous large
acquisitions since going public, Power Service would provide us with a
unique, high value add solution for our existing customer
base. Additionally, this acquisition would broaden DNOW’s global valve
actuation offering by applying Power Service’s core competencies around
spooling and valve modification, solving our customer’s needs for this
service, in addition to a turnkey tank battery (facilities)
solution. And, it would also give us the opportunity to leverage the
infrastructure of Odessa Pumps, an acquisition we made last year, to
continue to organically grow our customer participation by expanding
product lines across several regions. Simultaneously, Power Service
would benefit from our scale, international presence and PVF supplier
relationships required in their modularized packages.”

NOW Inc. is one of the largest distributors to energy and industrial
markets on a worldwide basis, with a legacy of over 150 years. NOW
operates primarily under the DistributionNOW and Wilson Export brands.
Through its network of over 300 locations and approximately 4,500
employees worldwide, NOW offers a comprehensive line of products and
solutions for the upstream, midstream and downstream energy and
industrial sectors. NOW's locations provide products and solutions to
exploration and production companies, energy transportation companies,
refineries, chemical companies, utilities, manufacturers and engineering
and construction companies.

Statements made in this press release that are forward-looking in nature
are intended to be "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934 and may involve risks
and uncertainties. These statements may differ materially from actual
future events or results. Readers are referred to documents filed by
DNOW L.P. with the Securities and Exchange Commission, including the
Form 10-K, which identify significant risk factors which could cause
actual results to differ from those contained in the forward-looking
statements.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160429005168/en/

Source: Business Wire
(April 29, 2016 - 6:45 AM EDT)

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