Shawcor Ltd. (TSX:SCL), a Canadian pipeline services company, announced on Monday that it has signed a deal to buy fibreglass maker
ZCL Composites Inc. (TSX:ZCL) for
$308 million.
Shawcor will pay $10 per ZCL share in cash under the agreement. At Friday’s close, ZCL shares were at $7.29 on the Toronto Stock Exchange. ZCL saw a nice bump at Monday’s market open, jumping up 35% to $9.90. With a market cap of $1.28 billion, Shawcor opened lower on Monday, and declined roughly 3.5% by midday trading.
The transaction is expected to close in Q2 2019 and ZCL shareholders must still approve the deal, with a vote scheduled in March 2019.