CIPP pioneer buys competitor, preps for big growth in rehab

Insituform Technologies paid $115.8 million for the North American business of Fyfe Group LLC.

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Insituform Technologies Inc. (St. Louis, Mo.) on July 27 announced a definitive agreement to acquire the North American business of Fyfe Group LLC (San Diego, Calif.) for a purchase price of $115.8 million. Insituform also was granted an option to acquire Fyfe Group’s Asian, European and Latin American operations. The company was expected to close the North American acquisition by Aug. 31. Fyfe Group develops, manufactures and installs fiber-reinforced polymer (FRP) systems for the structural repair, strengthening and restoration of pipelines (oil, gas, water and wastewater), buildings (commercial, federal, municipal, residential and parking garages), bridges, tunnels and waterfront structures. The company also offers pipeline rehabilitation, concrete repair, epoxy injection, corrosion mitigation and specialty coatings services. For 2010, Fyfe Group had North American revenues and EBITDA of approximately $45.1 million and $10.4 million, respectively. Joe Burgess, president and CEO of Insituform, believes that the market for FRP composites for construction rehabilitation projects in the U.S. will grow to more than $1.4 billion by 2016. Fyfe Group is well positioned to capture high-value growth as FRP composite technologies gain further acceptance in high-growth infrastructure markets. Fyfe Group’s senior management team, including Ed Fyfe (chairman) and Heath Carr (CEO), will remain with the company and be responsible for its day-to-day operations.