Mattr Announces Regulatory Approval and Expected Closing Date for Pipe Coating Business Sale
TORONTO, Nov. 27, 2023 (GLOBE NEWSWIRE) — Shawcor Ltd., dba Mattr Infratech (“Mattr” or the “Company”) (TSX: MATR) announced today that Norwegian and Mexican antitrust approvals have been issued for the sale of the majority of its pipe coating business (“Pipeline Performance Group” or “PPG”) to Tenaris S.A. (“Tenaris”) (NYSE and Mexico: TS and EXM Italy: TEN) announced through the Company’s press release dated August 14, 2023. Accordingly, all required regulatory approvals for the transaction have been obtained. The transaction is now expected to close in the next two weeks, subject to customary closing conditions. Upon closing, the Company expects to receive the agreed-upon purchase price of $166 million USD, or approximately $230 million CAD at current exchange rates, on a cash-free, debt-free basis, subject to normal working capital adjustments. Consistent with previously shared estimates, the aggregate net cash proceeds to be received by the Company in relation to this transaction are still expected to be modestly higher than the agreed purchase price.
“With the Mexican regulatory approval issued we now expect to close this important transaction within the coming weeks, enabling our Pipeline Performance Group business, and its thousands of extraordinary employees, to move forward into the next phase of their growth,” said Mike Reeves, President and CEO of Mattr. “Upon closing, Mattr’s extensive portfolio transformation and its strategic review process will be materially completed, enabling an even greater focus of time, energy and capital into the accelerated profitable growth of our high-value Composite and Connection Technologies’ segments.”
Mattr is a growth-oriented, global materials technology company broadly serving critical infrastructure markets, including electrification, transportation, communication, water management and energy. Its two business segments, Composite Technologies and Connection Technologies, operate a global network of manufacturing and technology centers, delivering differentiated, high-value products which enable responsible renewal and enhancement of critical infrastructure while lowering risk and environmental impact.
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Forward Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws. Words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “predict”, “estimate” or similar terminology are used to identify forward-looking information. Specifically, this news release includes forward-looking information in respect of, among other things, the timing and closing of the sale of the Pipeline Performance Group to Tenaris, and the completion of the Company’s extensive portfolio transformation and its strategic review process in connection therewith. This forward-looking information is based on assumptions, estimates and analysis made in the light of the Company’s experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the Company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. The forward-looking information is provided as of the date of this news release and the Company does not assume any obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.
Source: Shawcor Ltd., dba Mattr Infratech