Shawcor Announces the Sale of its Merchandise Company

Press launch written content from World Newswire. The AP news workers was not included in its generation.

TORONTO, Dec. 23, 2020 (Globe NEWSWIRE) — Shawcor Ltd. (“Shawcor” or the “Company”) (TSX: SCL) currently announced the sale of its Pipeline Effectiveness Items business (the “Products business”) to Seal For Life Industries (“Seal For Life”), a platform of Arsenal Capital Companions, a private fairness investment business centered out of New York. The buy price was USD $91.5 million, topic to doing the job funds changes.

“The Merchandise enterprise has offered secure returns to Shawcor for several many years. However, most recently it has offered restricted strategic alignment with Shawcor’s forward-wanting route, and the Company had the option to attain full benefit on disposition. Moreover, the sale of the enterprise permits the Corporation to concentrate on areas where it has the best differentiation chance for extended phrase development and serves to eliminate complexity from the firm. It is expected that the proceeds from the sale will be made use of to fund doing work capital for progress and to improve the equilibrium sheet as we shift into 2021.” reported Mr. Steve Orr, Shawcor’s President and Chief Govt Officer. “We would like to increase our gratitude to the personnel and prospects of the Solutions organization who have contributed to the successes of Shawcor around the many years, and we are self-confident in the continued achievement of the enterprise less than Seal For Life’s possession.”

Pipeline Functionality Products and solutions (formerly Pipeline and Pipe Products and services Goods) features Canusa-CPS, which manufactures heat shrinkable sleeves, adhesives and liquid coatings for pipeline joint security purposes Dhatec, which styles and assembles engineered pipe logistics merchandise and expert services and other assets in Europe and the Center East. The Merchandise business produced revenues of approximately USD $85 million in 2019.

Shawcor Ltd. is a world business serving different sectors of the Infrastructure, Strength and Transportation markets as a result of a few reporting segments: Pipeline and Pipe Expert services, Composite Methods and Automotive and Industrial. The Business operates by way of a international network of mounted and cell manufacturing and assistance facilities and is valued for its integrity, technological know-how and tested ability to execute the most complex projects in its industry.

This news release incorporates ahead-wanting info in just the indicating of applicable securities guidelines. Terms these kinds of as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “predict”, “estimate” or related terminology are made use of to recognize forward-looking information and facts. This ahead-seeking information is centered on assumptions, estimates and evaluation made in the light-weight of the Company’s working experience and its notion of trends, present-day problems and predicted developments, as effectively as other things that are believed by the Corporation to be acceptable and applicable in the circumstances. Forward-on the lookout information involves known and unidentified pitfalls, uncertainties and other aspects which may possibly induce true effects, performance or achievements to be materially different from people predicted, expressed or implied by the ahead-searching info. The forward-searching details is furnished as of the date of this news release and the Business does not presume any obligation to update or revise the forward-wanting information and facts to mirror new activities or circumstances, besides as demanded by legislation.

J.P. Morgan Securities LLC acted as financial advisor and Stikeman as authorized advisor to Shawcor. Jones Working day and Fasken acted as lawful advisors to Seal For Existence.

For even further details, you should speak to:

Shawcor Ltd.
Meghan MacEachern
Director, External Communications & ESG
Tel: 437-341-1848
E-mail: [email protected]
Web-site: www.shawcor.com

Resource: Shawcor Ltd.