Insituform Acquires The Bayou Companies & Corrpro Companies
Mar 01, 2009
Insituform Technologies Inc. announced Feb. 2 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 Bayou Companies LLC for $125 million and Corrpro Companies Inc. in a merger transaction with an enterprise value of approximately $91 million. The deals should be finalized by March 31, 2009.
The deals will make Insituform one of the premier, full-spectrum providers of pipeline and corrosion protection services in North America, according to a company press release. 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, the release said.
Bayou, a privately-held company headquartered in New Iberia, La., is a leading provider of products and services to the on-shore and off-shore 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 off-shore deepwater installations, including project management and logistics. For the 12 months ended Sept. 30, 2008, Bayou had net sales of $125.7 million.
Corrpro, with principal offices in Houston, 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 12 months ended Sept. 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 Insituform president and CEO Joseph Burgess.
Commenting on the acquisition, The Bayou Companies managing director Jerry Shea 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 Corrpro president and CEO William Larkin.