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.
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