Insituform to Acquire The Bayou Companies and Corrpro Companies
Acquisitions will diversify market presence and complement existing capabilities
Insituform Technologies, Inc. has announced the execution of definitive agreements to acquire The Bayou Companies, LLC and Corrpro Companies, Inc. for a combined purchase price of approximately $216 million, including the repayment of debt, in two independent transactions. Insituform is acquiring the business of The Bayou Companies, LLC in an asset acquisition for $125 million, and the Corrpro Companies, Inc. in a merger transaction with an enterprise value of approximately $91 million. They expect to close each acquisition by March 31, 2009.
The acquisitions will complement Insituform’s existing pipe protection capabilities, create cross-selling opportunities, increase the global market opportunity of Insituform’s existing energy and mining business, and diversify their presence across end-markets.
Bayou, a privately-held company headquartered in New Iberia, La., is a provider of products and services to the onshore and offshore oil and natural gas industries primarily in the Gulf of Mexico and North America. Bayou’s products and services include internal and external pipeline coating, lining, weighting and insulation.
Corrpro, with principal offices in Houston, Texas and Medina, Ohio, is a North American provider of corrosion protection and pipeline maintenance services, predominately to customers in the energy and water infrastructure industries. Corrpro provides a line of fully-integrated corrosion protection products and services for structures including pipelines, above and below-ground storage tanks, offshore oil platforms and U.S. Navy ships.
“These acquisitions provide a unique opportunity for us to transform our energy and mining business. Going forward, we also will remain focused on our existing sewer and water businesses and are excited about how these platforms fit together,” said Joseph Burgess, Insituform’s president and chief executive officer.