Aegion Corporation (Nasdaq Global Select Market: AEGN) today announced
the completion of the acquisition of Underground Solutions Inc.
(“Underground Solutions”), an innovative provider of proprietary fusible
PVC technology for the rehabilitation of pressure pipelines. The Company
paid approximately $85 million to acquire Underground Solutions and
separately paid $5.2 million for the discounted value of tax benefits
associated with existing net operating loss carry forwards. The Company
funded the transaction with approximately $60 million in cash and the
remainder borrowed through its revolving line of credit. The Company
expects contributions from Underground Solutions to be accretive to GAAP
earnings per share in 2016 with estimated revenues of $50 million and
operating margins in excess of 10 percent.
Charles R. Gordon, Aegion’s President and Chief Executive Officer, said,
“Underground Solutions’ patented PVC pipe and pipe fusing technologies,
which uniquely complement our Insituform® and Tyfo®/Fibrwrap®
customer solutions, will enable Aegion to further advance our strategy
to expand in the trenchless pressure pipe rehabilitation market. We are
especially pleased to have several key members of Underground Solutions’
senior management team, who average more than 20 years of industry
experience, join Aegion. These individuals will form an expanded team
within our Infrastructure Solutions platform dedicated to this promising
end market.”
Commenting on the acquisition, Frank R. Firsching, Vice President and
General Manager of Underground Solutions, said, “We believe our products
offer a distinct advantage to rehabilitate pipelines in water, sewer and
conduit applications. We are excited to join Aegion and add our
capabilities with their scale and market leading technologies to create
a more effective and less disruptive alternative to significantly reduce
water loss in aging pipeline infrastructure.”
About Aegion
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 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.
Forward-Looking Statements
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®, the Aegion® logo, Underground Solutions®,
Fusible PVC®, Fusible C-900®, Fusible C-905®
and FPVC® are registered trademarks of Aegion Corporation and
its affiliates.
(AEGN-GEN)
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