Insituform Technologies, Inc. Strengthens Middle East Presence and Capabilities
- Acquires CRTS, Inc., a leader in pipeline coating services based in Tulsa, Oklahoma. CRTS delivers proprietary internal and external coating services and equipment for new pipeline construction, primarily in North America, the Middle East and Brazil.
CHESTERFIELD, Mo.–(BUSINESS WIRE)–Insituform Technologies, Inc. (Nasdaq Global Select Market: INSU) today announced that in addition to the recent organic growth initiatives of its Energy and Mining group in the Middle East, it has closed on the acquisition of CRTS, Inc., an Oklahoma company (“CRTS”).
“CRTS is excited about the opportunity this relationship represents. Insituform and its many business units are perfectly positioned to help us grow and increase the product offerings to both our customer bases. We share markets, customers and customer-focused product and service solutions.”
Joe Burgess, President and Chief Executive Officer of Insituform, stated “these acquisitions will strengthen and expand Insituform’s Energy and Mining group’s presence and capabilities in the Middle East, North America and Brazil. CRTS has performed significant work in Saudi Arabia over the past few years and we expect it to continue to expand its presence in Saudi Arabia and other countries in the Middle East. Additionally, we believe that CRTS’s patented and other proprietary robotic pipe coating technologies distinguish the company from its competitors and allow the company to achieve compelling production efficiencies in both onshore and offshore pipe coating projects. These acquisitions complement Insituform’s organic growth in the Middle East, which includes an office opened in Oman in January 2010, significant projects performed by United Pipeline Systems in the Middle East over the past several years, Corrpro Companies’ long-term relationship with and work for Kuwaiti Oil Company and the recently announced joint venture in Saudi Arabia between Saudi Trading & Research Co., Ltd. and Corrpro Companies.”
CRTS, a privately-held company based in Tulsa, Oklahoma, delivers proprietary internal and external coating services and equipment for new pipeline construction projects from offices in North America, the Middle East and Brazil. For 2010, CRTS had total revenues of approximately $13.3 million and earnings before interest, taxes and depreciation (“EBITDA”) of approximately $3.8 million. The purchase price was $24.0 million at closing with CRTS shareholders able to earn up to an additional $15.0 million upon the achievement of certain performance targets over the three-year period ending December 31, 2013. The purchase price was funded in part by borrowings against the Company’s line of credit. The transaction closed on June 30, 2011.
James A. Huggins, President of CRTS, said, “CRTS is excited about the opportunity this relationship represents. Insituform and its many business units are perfectly positioned to help us grow and increase the product offerings to both our customer bases. We share markets, customers and customer-focused product and service solutions.”
Dorwin Hawn, Insituform Senior Vice President, Energy and Mining Division, said, “Since 2009, Insituform has been focused not only on the growth of our Energy and Mining businesses but on strategic expansion into the Middle East. We believe these transactions will accelerate our growth throughout the Middle East. In addition, the capabilities of CRTS and Hockway will strengthen the technical resources of our Energy and Mining team.”
About Insituform Technologies, Inc. (AEGION)
Insituform Technologies, Inc. is a global leader in pipeline protection. Insituform provides 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.
About United Pipeline Systems
United Pipeline Systems, a division of Insituform Technologies, Inc., is a global leader in providing high-density polyethylene (HDPE) lining systems for internal pipeline protection. United has constructed and internally lined more than 13,000 kilometers (8,000 miles) of pipelines on six continents since 1985. United developed the Tite Liner® system, which protects steel pipelines from a variety of chemicals and abrasives through a broad range of temperatures and pressures. More information about United can be found at www.unitedpipeline.com.
Corrpro Companies, Inc., a subsidiary of Insituform Technologies, Inc., is the leading provider of cathodic protection systems and engineering services in North America and also has operations in Europe and the Middle East. Corrpro offers corrosion solutions for every industrial market including pipeline, refinery, above and underground storage tanks, water, wastewater, concrete, infrastructure, offshore, and marine. More information about Corrpro can be found on its internet site at www.corrpro.com.