ShawCor acquires Desert NDT

ShawCor Ltd. has announced that it has completed the acquisition of all of the outstanding shares of Desert NDT LLC, first announced on 8 May, 2014, for a total consideration of approximately US$ 260 million, subject to adjustment for changes in working capital.

Desert is a Houston-based provider of non-destructive testing (NDT) services for new oil and gas gathering pipelines and infrastructure integrity management services. Desert operates through 18 branches located in major US oil and gas basins.

The acquisition was funded with cash and through available revolving credit facilities. Post-closing, ShawCor may consider raising equity to repay a portion of its outstanding revolving debt. The transaction is expected to be accretive to ShawCor's earnings per share within the next 12 months.

Mr. Steve Orr, President and Chief Executive Officer of ShawCor stated: "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 specialising in products and services for the pipeline and pipe services and the petrochemical and industrial segments of the oil and gas industry. The Company now operates through nine divisions with over 90 manufacturing and service facilities located around the world.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/09072014/shawcor_acquires_desert_ndt/