The Bayou Companies, Inc. (Bayou), a subsidiary of Insituform Technologies, Inc., has announced its agreement with Garneau, Inc. to acquire Garneau's pipe coating and insulation facility and associated assets in Camrose, Alberta, 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.
Bayou Perma-Pipe Canada, Ltd., a joint venture between Bayou and Perma-Pipe, Inc., will acquire the Garneau facility and assets, and will serve as the operating company for Bayou's Canadian operation. Bayou is based in New Iberia, LA, and provides pipe coating, fabrication, and logistics capabilities to oil and gas companies in the Gulf of Mexico.
"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.
With over 40 years of operating experience, Garneau has developed significant expertise as well as innovative technologies. The firm 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, Shea noted.
Bayou's joint-venture partner, Perma-Pipe, manufactures pre-insulated district heating and cooling piping systems in North America as well as pre-insulated products for subsea oil and gas gathering, related structures, and long distance petroleum pipeline transportation.
Insituform Technologies (Chesterfield, MO), a worldwide provider of proprietary technologies and services for rehabilitating sewer, water, energy, and mining piping systems and for the corrosion protection of industrial pipelines, acquired Bayou in February 2009.
For more information, visit http://www.bayoucompanies.com/ or www.insituform.com