Mattr to sell a substantial part of its pipeline segment to Tenaris for C$220M

Mattr (SAWLF) announced that it has entered into a definitive agreement to sell a substantial part of its pipe coating division to Tenaris S.A. (TS), including its wholly owned operations in Canada, the US, Mexico, Norway, the UAE and Indonesia, several mobile concrete coating plants, its joint-venture interest in Azerbaijan, its world-class research and development capabilities in Toronto and Norway, and a broad portfolio of intellectual property. The transaction will involve a mixture of legal entity and asset sales, and is subject to customary closing conditions, including regulatory approvals, which the company currently anticipates will be completed within approximately six months. The company will retain all earnings from the business until the transaction closes, and upon closing, the Company expects to receive gross sale proceeds of approximately $166M, or approximately C$220M at current exchange rates, on a cash-free, debt-free basis, subject to normal working capital adjustments. The perimeter of the transaction does not include entities of the PPG business in Malaysia, Italy, the United Kingdom and Brazil, which the company remains committed to exit at the appropriate time.