07:44 AM EDT, 09/16/2024 (MT Newswires) -- Mattr Corp. ( MTTRF ) on Monday entered into a definitive agreement to sell its subsidiary, Thermotite do Brazil, to Vallourec Tubular Solutions, a subsidiary of Vallourec S.A..

A statement noted Thermotite provides thermal insulation pipe coating services to the offshore oil and gas industry from its plant in Serra, Brazil and is the company's final remaining pipe coating business.

Monday's statement said the transaction, under which Vallourec will acquire 100% of the shares of the Thermotite legal entity, is subject to customary closing conditions, including regulatory approvals, which the company currently anticipates will be completed within the standard review time. The company added it will control and retain all earnings from Thermotite until the transaction closes, and upon closing the company expects to receive gross sale proceeds of at least US$17.5 million or approximately C$24 million at current exchange rates, on a cash-free, debt-free basis, subject to normal working capital adjustments.

"Once complete, the transaction announced today concludes our strategic review process," said Mike Reeves, Mattr's ( MTTRF ) President and CEO. "Aligned with the company's actions over the last three years to simplify our portfolio, lower volatility and increase full-cycle margins, this announcement -- and the proceeds ultimately expected from this transaction -- further enhances Mattr's ( MTTRF ) ability to deliver focused, high-return growth in our remaining core businesses."

Mattr ( MTTRF ) noted Thermotite's financial performance is currently reported under the company's Financial, Corporate & Other segment. Effective September 2024, the Thermotite business will be reported as an asset held for sale.

Shares in Mattr ( MTTRF ) last traded down $0.18 or near 1.3% at $13.89.