TORONTO, Dec. 06, 2022 (GLOBE NEWSWIRE) — Shawcor Ltd. (“Shawcor” or the “Company”) (TSX: SCL) announced that it has acquired Kanata Electronic Services Limited (“Kanata”), a privately owned manufacturer and supplier of specialty cable assemblies and wire harnesses for the nuclear and aerospace industries. Kanata serves customers around the globe from a single, Toronto area site and will be integrated into Shawcor’s ShawFlex wire and cable business.
“The addition of Kanata to our existing wire and cable portfolio will unlock significant opportunities for vertical integration and market expansion over the coming years,” said Frank Cistrone, President of Shawcor’s Automotive & Industrial segment. “Kanata’s portfolio of technologies, certifications and customer relationships are tightly aligned to ShawFlex’s existing capabilities and will accelerate our strategic growth objectives in key market sectors and geographies. This transaction is a compelling example of Shawcor’s commitment to enhancing organic growth through selective acquisitions and I’m excited to welcome the Kanata employees to our team.”
Barbara Miller, President of Kanata, added: “Kanata has been a long-standing partner to ShawFlex, and we are very pleased to now become a part of the team. We look forward to an even closer working relationship delivering incremental opportunities for our employees and enhanced value to our customers across the industrial and infrastructure markets”
While Kanata primarily serves the nuclear and spacecraft industries with highly sophisticated, custom cable assemblies, it is also a recognized leader in the design, manufacture and supply of specialty cable and wire harness solutions for the military, medical and commercial industries. In the first nine months of 2022, Kanata generated approximately $3 million in revenue. Terms of the transaction will remain private.
Shawcor Ltd. is a growth-oriented, global material sciences company serving the Infrastructure, Energy, and Transportation markets. The Company operates through a network of fixed and mobile manufacturing and service facilities. Its three business segments, Composite Systems, Automotive & Industrial and Pipeline & Pipe Services enable responsible renewal and enhancement of critical infrastructure while lowering risk and environmental impact.
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Disclaimers and Forward Looking Information
Unless otherwise specified, all dollar amounts in this press release are expressed in Canadian dollars.
Financial information related to Kanata is based on Accounting Standards for Private Enterprises (“ASPE”) in Canada, which differ from the International Financial Reporting Standards (“IFRS”) used to prepare Shawcor’s consolidated financial statements. As a result, the revenue information for Kanata presented for the nine-month period ended September 30, 2022 as determined in accordance with [ASPE] may not be comparable to Shawcor’s revenue information presented in accordance with IFRS, and Shawcor has not adjusted such revenue information to reflect IFRS. All historical financial information with respect to the operations of Kanata has been provided to Shawcor by Kanata, and we do not assume any responsibility or liability for the verification, accuracy or completeness of such information.
This news release contains forward-looking information within the meaning of applicable securities laws. Words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “predict”, “estimate” or similar terminology are used to identify forward-looking information. This forward-looking information is based on assumptions, estimates and analysis made in the light of the Company’s experience and its perception of trends, current conditions and expected developments, as well as other factors that are believed by the Company to be reasonable and relevant in the circumstances. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from those predicted, expressed or implied by the forward-looking information. The forward-looking information is provided as of the date of this news release and the Company does not assume any obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.
Source: Shawcor Ltd.