International Giants Cross-Border into the Paint Industry and Complete the Acquisition of the World's Top 30 Paint Companies

On November 30, Canada's Shawcor announced that it had completed the previously announced sale of its pipe coating business to global steel pipe industry giant Tenaris.

The company has received total proceeds of $182.6 million, including estimated working capital and $16.9 million in cash, resulting in effective proceeds of $165.7 million.

"With the closing of this important transaction, the company's portfolio transformation and strategic review process is now substantially complete." Mattr President and CEO Mike Reeves said," Mattr's future focus is to accelerate high-value growth in the Composites and Joining Technologies segment through existing capital programs and greater strategic acquisition capabilities."

PPG is a global leader in developing and delivering high-value offshore pipeline corrosion protection, flow efficiency, thermal insulation and concrete heavy-duty corrosion protection coatings. The financial report shows that Shawcor achieved sales revenue of 1.143 billion Canadian dollars in 2021, of which: PPG business sales revenue was 507.5 million Canadian dollars.

On the same day, Tenaris announced that it had completed the acquisition of Shawcor, a pipeline coating business subsidiary of Mattr Group, for US$182.6 million, including estimated working capital and US$16.9 million in cash. The acquired operations include nine plants located in Canada, Mexico, Norway, Indonesia, the United Arab Emirates and the United States, as well as several mobile concrete plants. Also includes world-class R&D facilities in Canada and Norway and an extensive intellectual property/product portfolio.

Michele Della Briotta, President of Tenaris Europe, said, “We are creating an excellent product portfolio composed of high-quality products, innovative services and advanced coating technologies to provide efficient and effective solutions for customers’ operations. The acquisition complements Tenaris’ broad product and service solutions with enhanced capabilities in end-to-end concrete weight layers, anti-corrosion coatings and flow assurance coating solutions for onshore and offshore pipelines.

Tenaris announced not long ago this year that it would acquire the oil and gas division of isOplus, a European manufacturer of heating pre-insulated piping systems and anti-corrosion coatings, for US$10 million. The acquired business unit was renamed Tenaris Italian Coatings Division and is dedicated to the development of anti-corrosion coatings for oil and gas transmission pipelines. The anti-corrosion coating can be applied to line pipe produced at Tenaris’ plants in Italy, Mexico, Argentina and Brazil.

Luxembourg-based Tenaris is the world's leading steel pipe manufacturer. It currently has the world's leading rare earth industrial base and an important steel industry base in China. It plays a decisive role in the entire industry, with marketing and service networks all over the world. Operating revenue in 2022 was US$11.8 billion, with 25,000 employees and business covering more than 100 countries and regions around the world.