ST. LOUIS–(BUSINESS WIRE)–Aegion Corporation (Nasdaq Global Select Market: AEGN) today completed the sale of its 51 percent interest in Bayou Perma-Pipe Canada, Ltd, a pipe coating company in Western Canada, to its joint venture partner, MFRI, Inc., for USD $9.6 million. The Company also expects to complete its company-wide cost reduction initiative and close the acquisition of Underground Solutions, Inc. in the coming weeks.
Charles R. Gordon, Aegion’s President and Chief Executive Officer, said, “In light of expectations for a prolonged low oil price environment, we have proactively taken action to reduce our exposure in high oil extraction cost regions of the North American upstream market. The sale of Corrosion Protection’s Canadian pipe coating joint venture completes the upstream repositioning that also included downsizing Energy Services’ operations in Central California. In total, the downsizing will reduce our annual upstream revenues by approximately $100 million. As part of this plan, we are also reducing annual operating expenses across Aegion by approximately $15 million and expect to substantially complete those actions during the first quarter. While we adapt to the current reality in the energy markets, we continue to focus on enhancing our long-term growth opportunities. The acquisition of Underground Solutions, Inc. advances one of our strategic initiatives to build a strong portfolio of technologies in the growing North American trenchless pressure pipeline rehabilitation market. I am confident these are the right moves to position Aegion for these market conditions and improve our prospects for long-term growth.”
Aegion Corporation is a global leader in infrastructure protection and maintenance, providing proprietary technologies and services: (i) to protect against the corrosion of industrial pipelines; (ii) to rehabilitate and strengthen water, wastewater, energy and mining piping systems and buildings, bridges, tunnels and waterfront structures; and (iii) to utilize integrated professional services in engineering, procurement, construction, maintenance and turnaround services for a broad range of energy related industries. Aegion’s business activities include manufacturing, distribution, maintenance, construction, installation, coating and insulation, cathodic protection, research and development and licensing. More information about Aegion can be found on our internet site at www.aegion.com.
About Underground Solutions, Inc.
Underground Solutions, Inc. is a leader in water and wastewater infrastructure and process technologies by providing infrastructure technologies for water, sewer and conduit applications. Underground Solutions, Inc. Fusible PVC® products include, Fusible C-900®, Fusible C-905® and FPVC®, which contain a proprietary PVC formulation that, when combined with its patented fusion process, results in a monolithic, fully-restrained, gasket-free, leak-free piping system. Fusible C-900® and Fusible C-905® both comply with the AWWA standards AWWA C900 and C905, respectively and are certified to NSF 61. More information about Underground Solutions, Inc. can be found at www.undergroundsolutions.com.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Aegion’s forward-looking statements in this news release represent its beliefs or expectations about future events or financial performance. These forward-looking statements are based on information currently available to Aegion 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 Aegion’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission on March 2, 2015, and in subsequently filed documents. In light of these risks, uncertainties and assumptions, the forward-looking events may not occur. In addition, Aegion’s actual results may vary materially from those anticipated, estimated, suggested or projected. Except as required by law, Aegion does not assume a duty to update forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, review additional disclosures made by Aegion from time to time in Aegion’s 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 Aegion in this news release are qualified by these cautionary statements.
Aegion® and the Aegion® logo are registered trademarks of Aegion Corporation and its affiliates.
Underground Solutions®, Fusible PVC®, Fusible C-900®, Fusible C-905® and FPVC® are registered trademarks of Underground Solutions, Inc.