#ZCL Composites #Shawcor#Manufacturing # Anthony P. Franceschini

Shawcor Ltd enters into agreement to acquire ZCL Composites

nat blo
|Jan 21|magazine5 min read

Toronto-based oilfield services company Shawcor announced today its plans to acquire ZLC composites, North America's largest manufacturer of environmentally friendly fiberglass reinforced plastic ("FRP") underground storage tanks for the fuel, water and wastewater and oil & gas markets.

With a cash offer of US$7.5 per share, the aggregate proposed consideration on a fully diluted basis implies a total enterprise value for the ZCL of approximately $234mn, or 12.5 times the company's adjusted EBITDA reported for the 12 month period ending September 30, 2018.

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ZCL Chairman Anthony P. Franceschini said in a statement: "We are pleased to announce this transaction and believe Shawcor will be excellent stewards of the ZCL business moving forward. We believe the transaction represents compelling value for ZCL shareholders and we are excited for the next stage of growth for our employees and other stakeholders."

On March 26, 2019, a special meeting between the members of ZCL’s security holders will take place. In order for the transaction to be implemented the companies are required to gain court approval and a two-thirds majority in favour of the acquisition attained by the ZCL security holders. If successful, the deal is expected to close on April 2, 2019.