Mattr Corp. Completes Strategic Agreement with Vallourec
Mattr Corp. Completes Strategic Agreement with Vallourec
Mattr Corp. has recently made headlines by signing a definitive agreement to divest its Brazilian subsidiary, Thermotite do Brazil, to Vallourec Tubular Solutions. This strategic decision signifies the company's ongoing efforts to streamline its operations and focus on core business segments. Selling Thermotite, which specializes in providing thermal insulation pipe coating services for the offshore oil and gas sectors, aligns perfectly with Mattr's vision moving forward.
Details of the Transaction
Under the terms of the deal, Vallourec will acquire 100% ownership of Thermotite, marking a significant shift for Mattr. The transaction remains contingent upon customary closing conditions and regulatory approvals, which the company anticipates will be achieved within a standard review period. Notably, Mattr will retain all earnings from Thermotite until the deal is finalized, expecting a gross transaction value of at least $17.5 million USD, or about $24 million CAD, once adjusted for normal working capital conditions.
Impact on Mattr's Strategic Direction
President and CEO Mike Reeves expressed optimism regarding the sale, stating that this move concludes Mattr's strategic review process. It further demonstrates the company's commitment over recent years to simplify its portfolio. “This transaction enhances Mattr’s ability to drive focused and high-return growth within our core operations,” Reeves mentioned. The sale of Thermotite is a pivotal step in eliminating operational volatility, enabling Mattr to concentrate on more profitable sectors of its business model.
Financial Overview Following Sale
Following the completion of this transaction, Thermotite's financials will be classified under the 'assets held for sale' category. Prior to this, efforts to bolster financial performance across Mattr's various branches had been ongoing, with the Thermotite operation contributing to a diverse revenue stream. By shifting focus away from the pipe coating business, Mattr aims to allocate resources more efficiently, thereby improving overall financial health.
About Mattr Corp.
Mattr is a forward-looking, global materials technology enterprise dedicated to serving critical infrastructure markets, which include transportation, energy, and communication. The company operates through an extensive network of manufacturing facilities, maintaining a commitment to responsible practices that support infrastructure renewal and risk reduction.
Company's Future Goals
Looking ahead, Mattr Corp. is poised to leverage its remaining business segments—Composite Technologies and Connection Technologies—focusing on innovation and growth opportunities. This strategic shift will help foster sustainable practices while enhancing product offerings across key markets.
Contact Information
For additional details, interested parties are encouraged to reach out to Meghan MacEachern, Mattr's VP of External Communications & ESG, at 437.341.1848 or via email at meghan.maceachern@mattr.com. The company's website provides further insights into its operations and strategy.
Frequently Asked Questions
What was the agreement Mattr Corp. recently signed?
Mattr Corp. has signed an agreement to sell its Brazilian subsidiary, Thermotite do Brazil, to Vallourec Tubular Solutions for $17.5 million USD.
Why is Mattr selling Thermotite?
The sale is part of Mattr's strategy to simplify its business model and focus on high-return growth in core operations.
What will happen to Thermotite's financial performance?
Thermotite's financial performance will be recorded as an asset held for sale after the transaction closes.
Who is the CEO of Mattr Corp.?
The President and CEO of Mattr Corp. is Mike Reeves, who has been vocal about the strategic changes within the company.
How can I contact Mattr Corp. for more information?
You can contact Meghan MacEachern, VP of External Communications & ESG, at 437.341.1848 or email her at meghan.maceachern@mattr.com.
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