Toronto, Ontario -- ShawCor Ltd's Bredero Shaw division has completed its acquisition of the remaining 50 percent interest in Thermotite Brasil Ltda and BS Servicios de Injeçao that it did not previously own. The deal is subject to regulatory approvals in Brazil. The purchase price is $37.9 million, to be paid in two parts: $19.4 million is due on completion of the transaction and $18.5 million is to be paid in 2013.
Bredero Shaw said in a 6 Oct announcement that it has been a partner in this successful joint venture in the offshore thermal insulation market in Brazil since 2006. The venture has a strategically located facility which provides anticorrosion and advanced insulation coatings for offshore applications. Bredero Shaw anticipates that the demand for these products will increase as Brazil invests heavily in offshore oil and gas developments.
ShawCor is an 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 operates seven divisions with over 70 manufacturing and service facilities around the world.
Bredero Shaw, ShawCor's largest division, is a global leader in pipe-coating solutions and employs about 4000 people in 15 countries. The division provides specialised coating systems and related services for corrosion protection, insulation and weight coating applications on land and marine pipelines including highly engineered corrosion and insulation systems for deepwater applications.