Bayou Companies To Expand Coverage with Acquisition of
Garneau Inc.’s Pipe Coating and Insulation Facility Located in Western Canada
NEW IBERIA, LA, September 30, 2009 – The Bayou Companies, Inc. (“Bayou”), a subsidiary of Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU), today announced its agreement with Garneau, Inc. to acquire Garneau’s pipe coating and insulation facility and associated assets located in Camrose, Alberta Canada. Bayou Perma-Pipe Canada, Ltd., a joint venture between
Bayou and
Perma-Pipe, Inc., will acquire the Garneau facility and assets and serve as the operating company for Bayou’s Canadian operation.
“This acquisition represents another strategic step for Insituform’s
energy and mining division. A pipe coating and insulation facility in Western Canada will allow Bayou to better serve its customers and will increase Bayou’s addressable market by approximately $200 million,” said Jerry Shea, Bayou’s Managing Director, Business Development. Shea further commented, “Bayou has the largest pipe coating, fabrication and logistics capability on the Gulf Coast. This acquisition will allow Bayou to broaden that reach and extends Bayou’s geographic coverage and its ability to serve important customers in Canada.”
With over 40 years of operating experience, Garneau has developed significant expertise as well as innovative technologies. Garneau also has maintained a long-term focus on continuously improving the pipe coating process with cost-effective quality coatings. The Camrose facility, constructed in 1997, was upgraded in 2007 and provides over 75,000 square feet of space in its coating facility.
Bayou’s joint-venture partner, Perma-Pipe, is the leading manufacturer of pre-insulated district heating and cooling piping systems in North America. Perma-Pipe also offers pre-insulated products for subsea oil and gas gathering, LNK terminals and long distance petroleum pipeline transportation. Bayou and Perma-Pipe have been partners in Bayou Flow Technologies (“BFT”) for approximately 10 years. BFT markets subsea flow assurance products and services to oil companies operating in the Gulf of Mexico.
Fati Elgendy, President of Perma-Pipe said, “Perma-Pipe’s long history with Bayou has been very successful. We’re honored to join them in this endeavor to bring insulation solutions to the portfolio of products offered in Canada.”
Garneau’s shareholders are expected to vote on the agreement, which has been approved by its Board of Directors, in late October 2009. The transaction is expected to close on or before October 31, 2009.
About Bayou
Bayou was acquired by Insituform Technologies, Inc. in February 2009. Bayou is a leading provider of cost-effective solutions to onshore and offshore energy and infrastructure companies primarily in North America and the Gulf of Mexico. 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. More information about Bayou can be found on its internet site at www.bayoucompanies.com.
About Insituform
Insituform Technologies, Inc. (the “Company”) is a leading worldwide provider of proprietary technologies and services for
rehabilitating sewer, water, energy and mining piping systems and the corrosion protection of industrial pipelines. More information about the Company can be found on its internet site at www.insituform.com.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. The Company makes forward-looking statements in this news release that represent the Company’s beliefs or expectations about future events or financial performance. These forward-looking statements are based on information currently available to the Company and on management’s beliefs, assumptions, estimates or projections and are not guarantees of future events or results. When used in this document, the words “anticipate,” “estimate,” “believe,” “plan,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Such statements are subject to known and unknown risks, uncertainties and assumptions, including those referred to in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the Securities and Exchange Commission on March 2, 2009, and in our subsequent quarterly reports on Form 10-Q. In light of these risks, uncertainties and assumptions, the forward-looking events may not occur. In addition, our actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, we do not assume a duty to update forward-looking statement, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by the Company from time to time in its periodic filings with the Securities and Exchange Commission. Please use caution and do not place reliance on forward-looking statements. All forward-looking statements made by the Company in this news release are qualified by these cautionary statements.
Insituform®, Bayou™, the Bayou™ logo and the Insituform® logo are the registered and unregistered trademarks of Insituform Technologies, Inc. and its affiliates.
For more information, contact:
David F. Morris
Senior Vice President and Chief Administrative Officer
636-530-8000