By Liz White, UT staff
Toronto, Ontario-Pipeline coating group Shawcor Ltd is to buy local competitor Garneau Inc., the two firms announced 20 April. The deal, originally expected to close 30 May, is now expected to be finalised by 23 June.
The deal will be through a "court-approved plan of arrangement," said ShawCor's statement. Garneau shareholders will receive $2.20 per share.
Under the plan, Nisku, Alberta-headquartered Garneau will sell its equipment manufacturing division to Garneau Industries Ltd, a business controlled by Glen Garneau, for $3.0 million.
Completion of the plan is subject to regulatory approval, court approval, the approval of the shareholders of Garneau Inc. and to other customary conditions, ShawCor said.
It is our intention to inject significant capital into Garneau's Camrose plant to add capacity and to improve productivity, quality and health, safety and environmental performance," said Bill Buckley, president and ceo of ShawCor Ltd, in a company statement.
"By integrating this plant into our existing western Canadian pipe coating network, we will be able to achieve production efficiencies resulting in improved service to customers in this active market," the ShawCor chief added.
Toronto-headquartered ShawCor claims its Bredero Shaw business unit is world's pre eminent pipe-coating business. It applies protective coatings on pipes used to deliver crude oil or gas from deep-water wells in oilfields all over the world, says ShawCor. The business has operations in Leith, Scotland, Houston, Texas, Calgary, Alberta, Belo Horizonte, Brazil, Monterrey and Coatzacoalcos in Mexico, and Singapore.