TORONTO -- Pipeline services company Shawcor Ltd. (SCL.TO) has signed a deal to buy ZCL Composites Inc. (ZCL.TO), a maker of fibreglass reinforced plastic underground storage tanks, for $308 million.

Under the friendly agreement, Shawcor will pay $10 per ZCL share in cash.

ZCL shares closed at $7.29 on the Toronto Stock Exchange on Friday.

Shawcor says the acquisition will help expand its product and service offering.

The deal requires approval by a two-thirds majority vote by ZCL shareholders expected to be held in March.

The transaction, which is also subject to other customary conditions including court and regulatory approvals, is expected to close early in the second quarter of this year.