MFRI acquires Bayou Perma-Pipe Canada

NILES - MFRI Inc. said its Perma-Pipe subsidiary has signed a purchase agreement with its joint venture partner Aegion Corp. to acquire Bayou Perma-Pipe Canada, a coating and insulation company in Alberta, Canada for approximately $9 million.

Perma-Pipe has owned a 49 percent interest in BPPC since 2009, when the joint venture was formed with

Aegion to serve the oil and gas industry in Western Canada.

"This is an important step for MFRI, enabling us to take advantage of an opportunity to adjust our business portfolio toward piping and position ourselves for increased activity in North America," said MFRI CEO Bradley Mautner. "Although conditions in the oil and gas industry are currently challenging and may remain so for some time, BPPC has generated significant revenue from anti-corrosion coating for the western Canadian oil sands markets and is a highly regarded and well established provider of those products."

The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2016. At the closing BPPC will be renamed Perma-Pipe Canada.