The Bayou Companies, Inc. ("Bayou"), a subsidiary of Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU), announced today the completion of its $12.25 million (CAN) acquisition of Garneau, Inc's pipe coating and insulation facility and associated assets located in Camrose, Alberta Canada. The acquisition was effected through Bayou Perma-Pipe Canada, Ltd. ("BPPC"), a joint venture between Bayou and Perma-Pipe, Inc. ("Perma-Pipe"), and will serve as the operating company for Bayou's Canadian operations.
Bayou announced its agreement to acquire the Camrose facility on September 30, 2009. The Garneau shareholder approved the transaction on October 28, 2009 and the closing occurred today. Bayou expects that this additional pipe coating and insulation facility in Western Canada will increase its addressable market by approximately $200 million.
Jerry Shea, Bayou's Managing Director, Business Development, said, "We are confident our partnership with Perma-Pipe will add significant value to our customers in the Canadian energy and mining industry. Perma-Pipe is the leading manufacturer of pre-insulated district heating and cooling piping systems in North America and will bring their expertise in pipe insulation to our operation." Bayou, which was founded in 1942, provides pipe coating, fabrication and logistics capability and is headquartered in New Iberia, Louisiana. Mr. Shea also announced the appointment of Eldridge Indest as President of Bayou Perma-Pipe Canada. Mr. Indest brings his experience as a 32-year veteran with Bayou, most recently serving as Director of Technical Planning in Bayou's New Iberia operations. Mr. Indest will be relocating to Camrose.
Bayou Perma-Pipe will be communicating directly with all current customers. In the meantime, more information about BPPC can be found on its website, www.bayoupermapipe.com or by calling 780-672-2345. BPPC's address is 5233 39th Street, Camrose, AB T4V 4R5.
