McJunkin History
The sun rises over the mountains, burning the morning mist off of the Kanawha River that flows through downtown Charleston, WV. Originating deep in the Appalachians, it slowly widens and joins the Ohio, then onto the Mississippi, ultimately pouring into the great Gulf of Mexico - all along the way passing major industrial cities of the United States.
On a hilltop just above downtown sits the corporate headquarters of McJunkin Corporation. Just like the Kanawha, McJunkin originates in the Appalachians; and just like the many waterways throughout this country, McJunkin serves major industrial centers throughout the U.S. With over $1.8 billion in sales projected for 2007, McJunkin has grown from humble origins to become a leading provider of industrial PVF and distribution services.
“The House That Service Built”
McJunkin’s focus on service began in 1921, when two brothers-in-law, Jerry McJunkin and H. Bernard Wehrle founded McJunkin Supply Company to serve the booming oil and gas industry in the mountains of West Virginia. Two years later, another brother-in-law, George Herscher, joined the company. In 1932 Union Carbide was founded in nearby Clendenin, quickly becoming a major customer and propelling McJunkin into the chemical industry.
World War II kept McJunkin’s distribution business busy supporting the war effort, while the company’s forge shop produced 500-pound bomb casings and amphibious vehicles for the military. Following the war, the first branch was opened in Marietta, OH. Post war economic expansion put branches in Louisville, Pittsburgh, and Atlanta. A Texas location came in 1965. By the end of the 1960’s McJunkin had 29 branches in 18 states and sales approached $60 million. Henry B. Wehrle, Jr. was elected president as the second generation of family members began to take over leadership of the company.
By the early 70’s the majority of the company’s business came from the refining and petrochemical industries, as McJunkin added branches in the Gulf Coast and the West Coast.
“First time, on time, every time”
In 1980, Russ Wehrle, Henry’s brother, was elected president and Henry was elected chairman of the board. McJunkin’s new corporate headquarters was completed just as the oil market crashed, putting financial pressure on the company and the entire industry for several years.
In 1987, McJunkin cemented its position in the Gulf Coast with the acquisition of Grant Supply, adding 11 locations and over $100 million in sales.
In the late 80’s McJunkin renewed its focus on quality, initiating a broad based quality effort that continues to this day. In 1987, Russ passed away and the third generation of Wehrles took the reins of leadership.
In 1989, McJunkin merged with Appalachian Pipe & Supply Company, now McJunkin Appalachian Oil Field Supply Company (McApple) which initially served customers within the Appalachian basin and grew to include a significant presence in Ohio, Michigan, Western New York, the Rockies, and Wyoming.
“One to One, Coast to Coast”
The introduction of new concepts defined much of the 1990’s for McJunkin. The company converted its ERP system to the new FOCUS platform, significantly expanding order processing and material handling capabilities. A hub and spoke system was developed, allowing McJunkin to service the entire country with a much broader line of inventory.
McJunkin’s nationwide coverage was put firmly in place with the acquisition of the Republic Supply Company of California, which added 18 locations and $80 million in sales.
As a response to customers’ needs, the 2000’s opened international doors for McJunkin as expansion to Nigeria occurred in 2002 and Puerto Rico in 2005.
Another 80 Years
McJunkin remains a privately held business, led by the Wehrle family until early 2007 . The company continues to distribute carbon, stainless steel, and corrosion resistant pipe, valves and fittings, oil country tubular goods and related drilling supplies, instrumentation and controls, and numerous other products in various integrated supply environments. Major industries served by McJunkin include chemical, petrochemical, gas distribution, gas transmission, power, paper, refining, mining, metals, oil and gas, and construction. McJunkin is also the largest provider of integrated supply services to the fluid processing and gas industries.
Integrated Supply was one of many initiatives that McJunkin identified when it crafted an aggressive strategic growth plan in 2001; another was growth through acquisitions. McJunkin has completed 13 acquisitions in the last several years.
In January 2007, McJunkin announced that its Board of Directors approved a substantial investment in the company by Goldman Sachs Capital Partners (GS Capital Partners), as part of McJunkin’s strategy to capitalize on its strong momentum and growth in the markets it serves. Shortly thereafter in July 2007, McJunkin announced a merger of equals with Red Man Pipe and Supply Company headquartered in Tulsa, OK.