ShawCor Ltd. (TSX: SCL) today announced the successful completion of its acquisition of all outstanding shares of Desert NDT LLC, a transaction initially announced on May 8, 2014. The total consideration for the acquisition stands at approximately $260 million, subject to customary adjustments for changes in working capital.
Houston-based Desert NDT LLC is a prominent provider of non-destructive testing (NDT) services, primarily serving new oil and gas gathering pipelines and offering critical infrastructure integrity management solutions. The company operates a robust network of 18 branches strategically located across major U.S. oil and gas basins, reinforcing its significant presence in the North American energy sector.
The acquisition was financed through a combination of cash reserves and existing revolving credit facilities. ShawCor Ltd. indicated that it may explore raising equity in the future to repay a portion of its outstanding revolving debt. This strategic transaction is anticipated to be accretive to ShawCor’s earnings per share within the next 12 months.
Steve Orr, President and CEO of ShawCor, commented on the integration: “Desert will operate as ShawCor’s ninth division and we look forward to working with the Desert team as we advance our integrity management strategy of providing management and data centric solutions for our customer’s production, processing and pipeline assets.”
ShawCor Ltd. is a global energy services company, renowned for its specialized products and services catering to the pipeline and pipe services, as well as the petrochemical and industrial segments of the oil and gas industry. With this acquisition, the company now operates through nine divisions, encompassing over ninety manufacturing and service facilities located around the world, further solidifying its global footprint and service offerings.
Reference: https://www.coatingsworld.com/breaking-news/shawcor-ltd-acquires-desert-ndt/
