Material sciences company Shawcor Ltd. will change its name to Mattr while simultaneously reviewing strategic alternatives for its Pipeline Performance Group (PPG), Shaw Pipeline Services (SPS) and Oilfield Asset Management (OAM) operating units, according to a press release on Sept. 12.

The name change is anticipated during the first half of 2023, conditional on regulatory and shareholder approvals, with details involving the exact effective date and new ticker symbol to be announced in the coming months.

“The steps announced here are important elements in our ongoing strategy to unlock long-term profitable growth and demonstrate our commitment to continuing the transformation of our company by simplifying our portfolio, lowering volatility and elevating full-cycle margins and free cash flow,” Shawcor president and CEO Mike Reeves commented in the release.

The company is considering a range of options for the three units, including potentially selling them. Its pipeline and pipe services reporting segment is currently comprised of the PPG and SPS units, while the composites systems reporting segment contains the OAM operating unit, the company stated.

As of this time, there is no assurance that any transaction regarding the operating units will take place, and there has been no timeline established to complete the strategic alternative review. The company has no plans to disclose details of the evaluation progress until it is required or updates have developed.

In the event of a sale of one or any of the units, Shawcor will seek to maximize shareholder value and minimize impacts to its employees, customers and vendors, the company added.

Additionally, CFO Tom Holloway stated in the release, proceeds from a potential sale would go toward helping "strengthen the company's balance sheet, accelerate the profitable expansion of our higher margin, less volatile composite systems and automotive and industrial segments and to return capital to shareholders as conditions permit."

Goldman Sachs & Co. LLC served as exclusive financial advisor to Shawcor in regards to its PPG business review.

“In recent years, the company has taken substantial steps to lower fixed costs across its portfolio, realigning the physical footprint and staff structure of the PPG, SPS and OAM businesses to more appropriately reflect current and projected future activity levels,” Holloway added.

“With these actions completed, a robust multi-year global wellbore and pipeline construction up-cycle well underway, and a substantial backlog of high-quality work secured, we believe the moment is right to realize optimal stakeholder value from a sale or other transaction of these businesses," he continued.