Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

ShawCor Acquires Desert NDT For $260 Million

|Includes:ShawCor Ltd. (SAWLF)

ShawCor has entered into a definitive purchase agreement to acquire all outstanding shares of Desert NDT LLC for a total consideration of approximately $260 million. ShawCor will acquire the shares from an investment group including Sterling Partners and Desert's founders.

Desert is a Houston-based provider of non-destructive testing (NDT) services for new oil and gas gathering pipelines and infrastructure integrity management services.

The transaction is subject to U.S. regulatory approval and is expected to close in Q3-2014. The acquisition will be funded with cash and through available revolving credit facilities.

Mr. Steve Orr, President and CEO of ShawCor stated that: "…Desert's NDT offering is expected to increase ShawCor's exposure to the growing unconventional oil and gas production in the United States, and to complement the business of Shaw Pipeline Services, ShawCor's NDT business unit."

In Oct-2012, ShawCor acquired Fineglade from Sophia Capital.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: SAWLF