ShawCor has added a ninth division to its services with the acquisition of Desert NDT LLC.
Desert NDT provides nondestructive testing (NDT), integrity management and inspection services for gathering pipelines and midstream infrastructure. With a network of 16 branch locations and more than 500 skilled technicians, the company provides experienced local support following its safety, quality and service values.
The deal was first announced May 8, though ShawCor announced it had acquired all of the outstanding shares of Desert NDT on July 8, for a total consideration of approximately $260 million.
“Desert will operate as ShawCor’s ninth division and we look forward to working with the Desert team as we advance our integrity management strategy of providing management and data centric solutions for our customer’s production, processing and pipeline assets,” said ShawCor president and CEO Steve Orr.
Desert NDT has grown rapidly over the past five years, establishing branches in every major shale oil and gas production basin, and also acquiring Midwest Inspection of Perryton, Texas, and T&K Inspection of Williston, North Dakota. Desert NDT complements ShawCor’s Shaw Pipeline Services business, which provides of girth weld inspection services for onshore transmission and offshore pipelines. Desert will integrate ShawCor’s proprietary advanced NDT technologies, including Real Time Radiography (RTR) and Automated Ultrasonic Testing (AUT).
ShawCor will also pursue its strategy to offer expanded integrity management capabilities for pipelines and midstream assets through Desert NDT. Currently, Desert teams offer API 510/570/653 inspections and can implement comprehensive mechanical integrity programs for OSHA Process Safety Management regulation compliance. These inspection and integrity programs serve a wide range of oil and gas assets including gas processing plants, compressor stations, weld pad production equipment, tanks and pipelines.