Shawcor Ltd., dba Mattr Infratech (“Mattr” or the “Company”) announced that Norwegian and Mexican antitrust approvals have been issued for the sale of the majority of its pipe coating business (“Pipeline Performance Group” or “PPG”) to Tenaris S.A. (“Tenaris”) (NYSE and Mexico: TS and EXM Italy: TEN) announced through the Company’s press release dated August 14, 2023. Accordingly, all required regulatory approvals for the transaction have been obtained. The transaction is now expected to close in the next two weeks, subject to customary closing conditions. Upon closing, the Company expects to receive the agreed-upon purchase price of $166 million USD, or approximately $230 million CAD at current exchange rates, on a cash-free, debt-free basis, subject to normal working capital adjustments. Consistent with previously shared estimates, the aggregate net cash proceeds to be received by the Company in relation to this transaction are still expected to be modestly higher than the agreed purchase price.
“With the Mexican regulatory approval issued we now expect to close this important transaction within the coming weeks, enabling our Pipeline Performance Group business, and its thousands of extraordinary employees, to move forward into the next phase of their growth,” said Mike Reeves, President and CEO of Mattr. “Upon closing, Mattr’s extensive portfolio transformation and its strategic review process will be materially completed, enabling an even greater focus of time, energy and capital into the accelerated profitable growth of our high-value Composite and Connection Technologies’ segments.”