Insituform to acquire The Bayou Companies and Corrpro Companies

Feb. 12, 2009
Insituform Technologies 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. The Company is acquiring the business of The Bayou Companies, LLC in an asset acquisition for $125 million. The Company is acquiring Corrpro Companies Inc. in a merger transaction with an enterprise value of approximately $91 million...

CHESTERFIELD, MO, Feb. 2, 2009 -- Insituform Technologies Inc. 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. The Company is acquiring the business of The Bayou Companies, LLC in an asset acquisition for $125 million. The Company is acquiring Corrpro Companies Inc. in a merger transaction with an enterprise value of approximately $91 million. The Company expects to close each acquisition by March 31, 2009.

Upon consummation of the transactions, Insituform will be one of the premier, full-spectrum providers of pipeline and corrosion protection services in North America. The acquisitions will complement Insituform's existing pipe protection capabilities, create cross-selling opportunities, significantly increase the global market opportunity of Insituform's existing energy and mining business, and diversify the Company's presence across end-markets. Insituform's energy and mining business revenues for the LTM period were $56.1 million and would have been $367.9 million on a pro forma basis for the same period. The Company's consolidated revenues for the twelve months ended September 30, 2008 were $529.4 million and would have been $845.0 million on a pro forma basis for the same period.

Bayou, a privately held company headquartered in New Iberia, Louisiana, is a leading provider of products and services to the on-shore 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. Bayou also provides specialty fabrication and services for offshore deepwater installations, including project management and logistics. For the twelve months ended September 30, 2008, Bayou had net sales of $125.7 million.

Corrpro, with principal offices in Houston, Texas and Medina, Ohio, is a premier North American provider of corrosion protection and pipeline maintenance services, predominately to customers in the energy and water infrastructure industries. Corrpro provides a comprehensive 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. For the twelve months ended September 30, 2008, Corrpro had revenues of $186.1 million.

"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.

"What our three companies have in common, and what will drive our success going forward as one organization, is our shared business interest in providing products and services to protect pipes," said Burgess. "Whether it is through a pipe lining solution offered by Insituform, a coating solution offered by Bayou or a cathodic protection system offered by Corrpro, we will be able to provide the appropriate solution for almost every customer."

Commenting on the acquisition, Jerry Shea, Managing Director, The Bayou Companies, said, "We are proud of our achievements as a family-owned company during the last 65 years, and are excited about working with Insituform. This transaction provides a unique opportunity to offer complementary products and services to a broader set of customers globally."

"During the past three years, Corrpro has grown revenue by almost 50 percent. We have refocused on our core business of corrosion protection, which is an excellent complement to Insituform's energy and mining and water businesses. We are excited about the new opportunities working with Insituform offers us, particularly in the municipal sector," said William Larkin, Corrpro's President and Chief Executive Officer.

The transactions will be financed with debt and through a public equity offering. We plan to launch the equity offering on Feb. 2, 2009. The offering will not be conditioned upon the completion of the proposed acquisitions. The consummation of each acquisition is subject to customary conditions, including the availability of financing.

Merrill Lynch & Co. acted as exclusive financial advisor to Insituform in connection with its acquisitions of The Bayou Companies, LLC and Corrpro Companies Inc. Thompson Coburn LLP served as legal counsel.

Insituform Technologies Inc. is a leading worldwide provider of proprietary technologies and services for rehabilitating sewer, water and other underground piping systems without digging or disruption.

###

Sponsored Recommendations

ArmorBlock 5000: Boost Automation Efficiency

April 25, 2024
Discover the transformative benefits of leveraging a scalable On-Machine I/O to improve flexibility, enhance reliability and streamline operations.

Rising Cyber Threats and the Impact on Risk and Resiliency Operations

April 25, 2024
The world of manufacturing is changing, and Generative AI is one of the many change agents. The 2024 State of Smart Manufacturing Report takes a deep dive into how Generative ...

State of Smart Manufacturing Report Series

April 25, 2024
The world of manufacturing is changing, and Generative AI is one of the many change agents. The 2024 State of Smart Manufacturing Report takes a deep dive into how Generative ...

SmartSights WIN-911 Alarm Notification Software Enables Faster Response

March 15, 2024
Alarm notification software enables faster response for customers, keeping production on track