TORONTO, Nov. 18, 2022 (GLOBE NEWSWIRE) -- Shawcor Ltd. ("Shawcor" or the "Company") (TSX: SCL) announced that it has sold its Oilfield Asset Management ("OAM") operating unit to Force Inspection Services Inc. ("Force"), in a transaction generating at least C$15 million in gross proceeds. Shawcor will retain OAM related Western Canadian real-estate assets which it may elect to sell at a future date. As part of the transaction, Shawcor has agreed to lease these properties to Force. The OAM business, reported within the Company's Composite Systems ("CS") segment, is a provider of downhole tubular inspection, repair and inventory management services to the Western Canadian energy market. It generated revenue of approximately C$38.1 million with an adjusted EBITDA of approximately C$5.3 million in the first nine months of 2022. Proceeds from the sale will be used to reduce the Company's existing indebtedness and fund high-value growth opportunities.
"In September we announced our intent to review strategic alternatives for three operating units, including the Oilfield Asset Management business," said Mike Reeves, President and CEO of Shawcor. "Executing this sale further demonstrates our continued commitment to simplify our portfolio, lower business volatility and elevate full-cycle margins and free cash flow. I would like to express my gratitude to the employees of OAM for their many contributions to Shawcor and wish them great success under their new ownership."
With the completion of this transaction, the Company's CS reporting segment now consists of two operating units: the Xerxes® business, which manufactures fiberglass reinforced plastic underground storage tanks primarily for the retail fuel, storm water and wastewater markets; and the FlexPipetm business, which manufactures flexible fiberglass reinforced composite pipe used for oil and gas gathering and water disposal lines, carbon dioxide injection lines and other applications requiring corrosion resistance and high-pressure capabilities.
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.
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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.