Shawcor Announces the Sale of its Products Business
TORONTO, Dec. 23, 2020 (GLOBE NEWSWIRE) — Shawcor Ltd. (“Shawcor” or the “Company”) (TSX: SCL) today announced the sale of its Pipeline Performance Products business (the “Products business”) to Seal For Life Industries (“Seal For Life”), a platform of Arsenal Capital Partners, a private equity investment firm based out of New York. The purchase price was USD $91.5 million, subject to working capital adjustments.
“The Products business has provided stable returns to Shawcor for many years. However, most recently it has presented limited strategic alignment with Shawcor’s forward-looking direction, and the Company had the opportunity to obtain full value on disposition. Furthermore, the sale of the business allows the Company to focus on areas where it has the greatest differentiation opportunity for long term growth and serves to remove complexity from the organization. It is anticipated that the proceeds from the sale will be used to fund working capital for growth and to strengthen the balance sheet as we move into 2021.” said Mr. Steve Orr, Shawcor’s President and Chief Executive Officer. “We would like to extend our gratitude to the employees and customers of the Products business who have contributed to the successes of Shawcor over the years, and we are confident in the continued success of the business under Seal For Life’s ownership.”Pipeline Performance Products (formerly Pipeline and Pipe Services Products) includes Canusa-CPS, which manufactures heat shrinkable sleeves, adhesives and liquid coatings for pipeline joint protection applications; Dhatec, which designs and assembles engineered pipe logistics products and services; and other assets in Europe and the Middle East. The Products business generated revenues of approximately USD $85 million in 2019.Shawcor Ltd. is a global company serving various sectors of the Infrastructure, Energy and Transportation markets through three reporting segments: Pipeline and Pipe Services, Composite Systems and Automotive and Industrial. The Company operates through a global network of fixed and mobile manufacturing and service facilities and is valued for its integrity, technology and proven capability to execute the most complex projects in its industry.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. 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.J.P. Morgan Securities LLC acted as financial advisor and Stikeman as legal advisor to Shawcor. Jones Day and Fasken acted as legal advisors to Seal For Life.For further information, please contact:Shawcor Ltd.
Director, External Communications & ESG
Website: www.shawcor.comSource: Shawcor Ltd.