TORONTO, Dec. 23, 2020 (GLOBE NEWSWIRE) — Shawcor Ltd. (“Shawcor” or the “Firm”) (TSX: SCL) immediately introduced the sale of its Pipeline Efficiency Merchandise enterprise (the “Merchandise enterprise”) to Seal For Life Industries (“Seal For Life”), a platform of Arsenal Capital Companions, a non-public fairness funding agency based mostly out of New York. The acquisition value was USD $91.5 million, topic to working capital changes.
“The Merchandise enterprise has supplied steady returns to Shawcor for a few years. Nonetheless, most lately it has offered restricted strategic alignment with Shawcor’s forward-looking route, and the Firm had the chance to acquire full worth on disposition. Moreover, the sale of the enterprise permits the Firm to concentrate on areas the place it has the best differentiation alternative for long run development and serves to take away complexity from the group. It’s anticipated that the proceeds from the sale might be used to fund working capital for development and to strengthen the stability sheet as we transfer into 2021.” stated Mr. Steve Orr, Shawcor’s President and Chief Govt Officer. “We want to lengthen our gratitude to the workers and prospects of the Merchandise enterprise who’ve contributed to the successes of Shawcor over time, and we’re assured within the continued success of the enterprise beneath Seal For Life’s possession.”
Pipeline Efficiency Merchandise (previously Pipeline and Pipe Providers Merchandise) contains Canusa-CPS, which manufactures warmth shrinkable sleeves, adhesives and liquid coatings for pipeline joint safety functions; Dhatec, which designs and assembles engineered pipe logistics services and products; and different property in Europe and the Center East. The Merchandise enterprise generated revenues of roughly USD $85 million in 2019.
Shawcor Ltd. is a world firm serving varied sectors of the Infrastructure, Power and Transportation markets by way of three reporting segments: Pipeline and Pipe Providers, Composite Techniques and Automotive and Industrial. The Firm operates by way of a world community of mounted and cell manufacturing and repair services and is valued for its integrity, expertise and confirmed functionality to execute probably the most complicated tasks in its business.
This information launch accommodates forward-looking info throughout the which means of relevant securities legal guidelines. Phrases akin to “might”, “will”, “ought to”, “anticipate”, “plan”, “count on”, “consider”, “predict”, “estimate” or related terminology are used to establish forward-looking info. This forward-looking info relies on assumptions, estimates and evaluation made within the gentle of the Firm’s expertise and its notion of developments, present circumstances and anticipated developments, in addition to different elements which are believed by the Firm to be affordable and related within the circumstances. Ahead-looking info includes identified and unknown dangers, uncertainties and different elements which can trigger precise outcomes, efficiency or achievements to be materially completely different from these predicted, expressed or implied by the forward-looking info. The forward-looking info is supplied as of the date of this information launch and the Firm doesn’t assume any obligation to replace or revise the forward-looking info to replicate new occasions or circumstances, besides as required by regulation.
J.P. Morgan Securities LLC acted as monetary advisor and Stikeman as authorized advisor to Shawcor. Jones Day and Fasken acted as authorized advisors to Seal For Life.
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Supply: Shawcor Ltd.