ShawCor completes acquisition of Desert NDT for $260MM
Posted: 2014-7-19
ShawCor (TSX: SCL.A, SCL.B) announced it has completed the acquisition of all of
the outstanding shares of Desert NDT LLC, first announced on May 8, 2014, for a
total consideration of approximately US$260 million. Desert NDT is the leading
US provider of nondestructive testing (NDT), integrity management (IM) and
inspection services for gathering pipelines and midstream infrastructure. With a
network of 16 branch locations and more than 500 skilled technicians, Desert
NDT is able to provide highly experienced local support following its Safety,
Quality and Service values.
Mr. Steve Orr, President and CEO 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."
Desert NDT has grown tremendously over the past five years, establishing
branches in every major shale oil and gas production basin, and also acquiring
Midwest Inspection of Perryton, TX and T&K Inspection of Williston, ND. Desert
NDT complements ShawCor's Shaw Pipeline Services business, which is the
leading provider of girth weld inspection services for onshore transmission and
offshore pipelines. Desert will integrate ShawCor's proprietary advanced NDT
technologies including Real Time Radiography (RTR) and Automated Ultrasonic
Testing (AUT).
ShawCor will also pursue its strategy to offer expanded Integrity Management
capabilities for pipelines and midstream assets through Desert NDT. Currently,
Desert teams offer API 510/570/653 inspections and can implement
comprehensive mechanical integrity programs for OSHA Process Safety
Management (PSM) regulation compliance. These inspection and integrity
programs serve a wide range of oil and gas assets including gas processing
plants, compressor stations, weld pad production equipment, tanks and
pipelines.
ShawCor Ltd. is a global energy services company specializing 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 ninety manufacturing and service facilities located around the
world.
the outstanding shares of Desert NDT LLC, first announced on May 8, 2014, for a
total consideration of approximately US$260 million. Desert NDT is the leading
US provider of nondestructive testing (NDT), integrity management (IM) and
inspection services for gathering pipelines and midstream infrastructure. With a
network of 16 branch locations and more than 500 skilled technicians, Desert
NDT is able to provide highly experienced local support following its Safety,
Quality and Service values.
Mr. Steve Orr, President and CEO 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."
Desert NDT has grown tremendously over the past five years, establishing
branches in every major shale oil and gas production basin, and also acquiring
Midwest Inspection of Perryton, TX and T&K Inspection of Williston, ND. Desert
NDT complements ShawCor's Shaw Pipeline Services business, which is the
leading provider of girth weld inspection services for onshore transmission and
offshore pipelines. Desert will integrate ShawCor's proprietary advanced NDT
technologies including Real Time Radiography (RTR) and Automated Ultrasonic
Testing (AUT).
ShawCor will also pursue its strategy to offer expanded Integrity Management
capabilities for pipelines and midstream assets through Desert NDT. Currently,
Desert teams offer API 510/570/653 inspections and can implement
comprehensive mechanical integrity programs for OSHA Process Safety
Management (PSM) regulation compliance. These inspection and integrity
programs serve a wide range of oil and gas assets including gas processing
plants, compressor stations, weld pad production equipment, tanks and
pipelines.
ShawCor Ltd. is a global energy services company specializing 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 ninety manufacturing and service facilities located around the
world.
