RE:Lake Superior consulting sale The Shawcor cleanup continues!
I found it very interesting how poorly Lake Superior Consulting performed given the infrastructure buildout on both sides of the border. I had owned shares in a pipeline infrastucture company called Macro Enterprises and they were on track for a record year. Management took the company private earlier this year.
My view is that LSC was missing the boat and Shawcor realized that tuning it up would be a distraction compared to executing on items that were a better long term fit. At $8 million in gross proceeds I think its safe to say that they "walked away" from the business and let the management employees who are buying it out sort things out.
I think selling was the right idea given the strategic fit; however, I hope there is some contingent compensation for Shawcor (I am doubtful).
Best of luck,
LR