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United States : SHAWCOR LTD agreed to buy all DESERT NDT S outstanding shares

May 10, 2014

ShawCor Ltd declared that it has agreed to buy all of the outstanding shares of Desert NDT LLC (Desert) in a deal for around US$260 million.

The transaction is set for completion in the Q3 of 2014 after receiving US regulatory approval.

The company would finance the acquisition with cash and through available revolving credit facilities.

We are very pleased to welcome Desert to the ShawCor family. Desert's NDT offering is expected to increase ShawCor's exposure to the growing unconventional oil and gas production in the US, and to complement the business of Shaw Pipeline Services, ShawCor's NDT business unit, said Steve Orr, President and Chief Executive Officer of ShawCor.

Orr added, The acquisition of Desert will also be a vehicle to advance our integrity management strategy of providing management and data centric solutions for our customer's production, processing and pipeline assets. Desert's integrity management business complements our recent investments in Zedi and Vintri and is anticipated to provide ShawCor the foundation to generate recurring revenue from our customers' operating expenditure budgets.

Desert is a Houston based provider of non-destructive testing (NDT) services for new oil and gas gathering pipelines and infrastructure integrity management services. Desert operates through 18 branches located in major oil and gas basins and is trailing 12 month EBITDA is in excess of US$ 33 million with operating income of approximately US$ 22 million.

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Source: TendersInfo (India)