Bayoucompanies: Aegion Corporation Completes Sale of Its Bayou Pipe Coating and Insulation Business

ST. LOUIS, Sept. 04, 2018 (GLOBE NEWSWIRE) -- Aegion Corporation (Nasdaq Global Select Market:AEGN) ("Aegion" or the "Company") today announced the closing of its sale of the business and assets of The Bayou Companies, LLC ("Bayou Companies"), a wholly-owned subsidiary of Aegion, to a private equity fund managed by Altamont Capital Partners ("Altamont"). As part of the transaction, the Company also divested its 51 percent membership interest in Bayou Wasco Insulation, LLC. ("Bayou Wasco"). Bayou Companies and Bayou Wasco, each based in New Iberia, Louisiana, specialize in pipe coating and insulation for new construction in the on-shore and off-shore upstream oil and gas sector. The sale price was $46 million, consisting of $38 million paid in cash at closing and $8 million in a fully secured two-year loan payable to Aegion. Aegion also will be eligible to receive an additional $4 million in total earn-out payments based on performance of the divested businesses in 2019 and 2020. Cash proceeds, net of customary closing costs, will be used to repay outstanding borrowings on Aegion's line of credit. The sale is expected to result in a pre-tax loss of approximately $8 to $10 million.Charles R. Gordon, Aegion's President and Chief Executive Officer, commented, "We are pleased to ...Full story available on Benzinga.com