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.
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."
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.