Aegion Corporation (“Aegion”) (Nasdaq Global Select Market: AEGN) today
announced that it has sold its 50% interest in Insituform
Rohrsanierungstechniken GmbH (“Insituform-Germany”) to Per Aarsleff A/S,
a Danish company (“Aarsleff”). Insituform-Germany, a company that was
jointly owned by Aegion and Aarsleff and had 2012 revenues of
approximately €72 million, is active in the business of trenchless sewer
and water rehabilitation in Germany, Slovakia and Hungary. The sale
price was €14 million, approximately US $18.3 million. In connection
with the sale, Insituform-Germany also entered into a product supply
agreement with Aegion whereby Insituform-Germany will purchase on an
annual basis at least GBP 2.3 million, approximately US $3.6 million, of
felt cured-in-place pipe (“CIPP”) liners during the two-year period from
June 26, 2013 to June 30, 2015 (the GBP 2.3 million represents the felt
liner volume purchased by Insituform-Germany from Aegion in 2012).
J. Joseph Burgess, Aegion’s President and Chief Executive Officer
commented, “The sale of our interests in Insituform-Germany is
consistent with our strategy to optimize Aegion’s product and service
mix according to the market needs of individual countries, thereby
seeking to improve the overall return of our businesses. The German CIPP
contracting market is highly competitive and fragmented. As a result,
the contracting returns of Insituform-Germany have languished for a
number of years. With this transaction, Aegion will continue to provide
felt CIPP liners to Insituform-Germany until at least June 30, 2015, but
also will immediately market Aegion’s glass CIPP liners in Germany, the
largest CIPP market in Europe.”
Thomas E. Vossman, Aegion’s Senior Vice President – Water and
Wastewater, commented, “For the year ended December 31, 2012 and the
quarter ended March 31, 2013, Aegion recorded equity earnings/(loss) of
$0.9 million and $(0.3) million, respectively, from Insituform-Germany’s
operation. In addition, Aegion recorded approximately $0.9 million in
royalty income from Insituform-Germany in 2012. This transaction divests
an underperforming business unit and will allow Aegion to focus its
resources and efforts on higher return businesses and stimulate growth
of third-party product sales in Europe.”
The transaction is expected to result in a pre-tax gain on sale of
investment of approximately US $11-12 million.
About Aegion Corporation
Aegion Corporation is a global leader in infrastructure protection,
providing proprietary technologies and services to protect against the
corrosion of industrial pipelines and for the rehabilitation and
strengthening of sewer, water, energy and mining piping systems and
buildings, bridges, tunnels and waterfront structures. More information
about Aegion can be found on its internet site at www.aegion.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,
2012, as filed with the Securities and Exchange Commission on February
27, 2013, and in the Company’s subsequent quarterly reports on Form
10-Q. In light of these risks, uncertainties and assumptions, the
forward-looking events may not occur. In addition, the Company’s actual
results may vary materially from those anticipated, estimated, suggested
or projected. Except as required by law, the Company does 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.
Aegion®, Insituform® and the Aegion® logo are the
registered trademarks of Aegion Corporation and its affiliates.
Copyright Business Wire 2013