Aegion Corp. Acquires Brinderson L.P., an Integrated Oil and Gas Services Provider
Jun 26, 2013
Aegion Corp. (Nasdaq Global Select Market: AEGN) has announced the execution of a definitive agreement to acquire the equity shares of Brinderson, L.P. and related entities for a purchase price of $150 million. Aegion expects to close the acquisition on or around July 1, 2013.
Brinderson is a leading integrated service provider of maintenance, construction, engineering and turnaround activities for the upstream and downstream oil and gas markets. Primarily focused on serving large oil and gas customers in California, Brinderson’s competitive advantages include its industry-leading safety record, a strong reputation for reliability and quality and comprehensive solutions needed for major refinery maintenance, repairs and retrofits. These core competencies position Brinderson to meet the growing demand for non-discretionary operating and maintenance expenditures. Through long-term contracts and nearly 40 master service agreements, Brinderson derives approximately 75 percent of its revenues from recurring activities. For the 12 months ended March 31, 2013, Brinderson’s revenues totaled approximately $231 million and adjusted EBITDA was $23.8 million.
Aegion president and CEO J. Joseph Burgess said, “We are pleased Brinderson is joining Aegion’s Energy & Mining platform, opening for us a new end market for the maintenance of upstream and downstream energy facilities. Aegion plans to compete across a broader portion of the energy value chain with an $800 million to $900 million Energy & Mining platform dedicated to preserving and rehabilitating critical pipeline assets, as well as maintaining the facilities used for processing and refining oil and gas products. Following the acquisition, Aegion’s Energy & Mining revenues from recurring operating and maintenance activities are expected to exceed 50 percent, compared to 45 percent prior to the acquisition. This transaction marks the beginning of a strategic effort to expand our capabilities in this important sector of the United States energy market.”
Commenting on the acquisition, Brinderson president and CEO Russell Conda said, “We successfully transformed Brinderson over the last five years from a construction-based company supporting new capital spend in oil refineries into an integrated, full-service company providing long-term maintenance programs and other key services to our clients. Aegion will help us access new markets within the United States and support the continued growth we expect in our core West Coast market. In turn, Brinderson provides Aegion access to the upstream and downstream markets through long-term relationships with large, blue chip companies. The transformation of the United States energy market towards self-reliance is expected to bring significant investment in the refining and petrochemical segment. As a partner with Aegion, Brinderson is well positioned to assist its clients with this anticipated growth.”
Brinderson’s senior management team, including Russell Conda, will remain with the company after the transaction closes. These executives have, on average, more than 25 years of industry experience serving the oil and gas industry.