TORONTO, Dec. 23, 2020 (GLOBE NEWSWIRE) — Shawcor Ltd. (“Shawcor” or the “Firm”) (TSX: SCL) as we speak 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 personal fairness funding agency primarily based out of New York. The acquisition worth was USD $91.5 million, topic to working capital changes.
“The Merchandise enterprise has offered steady returns to Shawcor for a few years. Nevertheless, most lately it has offered restricted strategic alignment with Shawcor’s forward-looking course, and the Firm had the chance to acquire full worth on disposition. Moreover, the sale of the enterprise permits the Firm to deal with 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 can be used to fund working capital for development and to strengthen the steadiness sheet as we transfer into 2021.” mentioned Mr. Steve Orr, Shawcor’s President and Chief Govt Officer. “We want to prolong our gratitude to the staff and prospects of the Merchandise enterprise who’ve contributed to the successes of Shawcor through the years, 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 different property in Europe and the Center East. The Merchandise enterprise generated revenues of roughly USD $85 million in 2019.
Shawcor Ltd. is a worldwide firm serving varied sectors of the Infrastructure, Power and Transportation markets by means of three reporting segments: Pipeline and Pipe Providers, Composite Programs and Automotive and Industrial. The Firm operates by means of a worldwide community of fastened and cell manufacturing and repair amenities and is valued for its integrity, expertise and confirmed functionality to execute probably the most advanced initiatives in its trade.
This information launch accommodates forward-looking info throughout the that means of relevant securities legal guidelines. Phrases corresponding to “could”, “will”, “ought to”, “anticipate”, “plan”, “count on”, “consider”, “predict”, “estimate” or comparable terminology are used to determine forward-looking info. This forward-looking info is predicated on assumptions, estimates and evaluation made within the gentle of the Firm’s expertise and its notion of tendencies, present situations and anticipated developments, in addition to different components which might be believed by the Firm to be cheap and related within the circumstances. Ahead-looking info entails identified and unknown dangers, uncertainties and different components which can trigger precise outcomes, efficiency or achievements to be materially totally different from these predicted, expressed or implied by the forward-looking info. The forward-looking info is offered 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 mirror 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.