Shawcor Sells its Lake Superior Consulting Business
TORONTO, Sept. 06, 2022 (GLOBE NEWSWIRE) -- Shawcor Ltd. (“Shawcor” or the “Company”) (TSX: SCL) announced that it has sold its Lake Superior Consulting (“LSC”) operating unit to a private investment group, including members of LSC management, in a transaction generating approximately C$8 million in gross proceeds. The LSC business, reported within the Company’s Pipeline and Pipe Services (“PPS”) segment, offers engineering, consulting and field inspection services to the US onshore pipeline and broader energy infrastructure markets. It generated revenue of approximately C$59 million with neutral adjusted EBITDA during the full year of 2021 and generated revenue of approximately C$26 million with an adjusted EBITDA loss of C$1 million during the first half of 2022. Proceeds from the sale will be used to reduce the Company’s existing indebtedness.
“This sale further demonstrates Shawcor’s strategic ongoing commitment to create an optimized business portfolio, prioritizing the development and delivery of differentiated, high value solutions in support of industrial and critical infrastructure end markets,” said Mike Reeves, President and CEO of Shawcor. “I would like to express my gratitude to the employees of LSC for their many contributions to Shawcor and wish them great success under their new ownership.”
With the completion of this transaction, the Company’s PPS reporting segment now consists of two operating units: the Pipeline Performance Group business, which provides pipeline coating solutions; and the Integrity Management business, which provides non-destructive testing solutions to the US onshore and global offshore markets.
About Shawcor
Shawcor Ltd. is a growth-oriented, global material sciences company serving the Infrastructure, Energy, and Transportation markets. The Company operates through a network of fixed and mobile manufacturing and service facilities. Its three business segments, Composite Systems, Automotive & Industrial and Pipeline & Pipe Services enable responsible renewal and enhancement of critical infrastructure while lowering risk and environmental impact.
For further information, please contact:
Meghan MacEachern
External Communications & ESG, Director
Telephone: 437.341.1848
Email:
shawcor.com
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. 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.
