Aegion completes Fyfe’s Asian & Latin American biz buyouts
April 11, 2012 - United States Of America
Aegion Corporation announced the closing of its acquisitions of the Asian and Latin American operations of Fyfe Group, LLC. The purchase price for these acquisitions was $40.7 million (USD) and $2.2 million (USD), respectively.
The acquisition of Fyfe Group’s Asian operations, which is based in Singapore, includes its operations in Singapore, Hong Kong, Malaysia, Japan, Indonesia and Brunei. Customers in India and China will be served through an exclusive product supply and license agreement.
Fyfe Group opened its first Asian office in the late 1990s and since that time has grown to nearly 100 employees. The acquisition also includes the patent portfolio of Fyfe Asia. Fyfe Asia will continue to actively research and develop improved products and processes for the structural repair, strengthening and restoration of buildings, bridges and other infrastructure using advanced composites.
J. Joseph Burgess, President and Chief Executive Officer of Aegion Corporation, stated, “The acquisition of the North American business of Fyfe Group, LLC in August 2011 was transformative for our Company and was the foundation for our Commercial & Structural platform. These latest acquisitions execute part of the plan we announced in August to also acquire Fyfe Group’s Asian, European and Latin American operations. We remain focused on continuing to execute that plan and expect to complete the European acquisition within the coming months.”
Burgess continued, “The highly valued management team for Fyfe Asia is led by Mr. Sim Moe Wee, Senior Vice President and General Manager. Mr. Sim will continue in this role and will focus on delivering on high-growth sales goals for each of the Asian operations.”
Mr. Sim commented, "My team and I are thrilled to be a part of the Aegion team. We fully expect that our combination of technology, scale and innovation will accelerate both Fyfe's and Aegion's growth throughout Asia.”
Fyfe’s Latin America operation is headquartered in San Salvador, El Salvador and includes operations in Chile, Columbia, Costa Rica, El Salvador, Panama and Peru. Aegion believes the Latin American region is ripe for growth and expects to build on the successes experienced to date in each of the countries in which Fyfe Latin America operates. Aegion expects that these operational groups, initially organized from 2007 to 2011, will experience robust growth. Aegion expects to invest in developing the market and further expansion in the region.
“The management team of Fyfe Latin America remains in place and will lead this business to increased success,” said Erick Argueta, Managing Director of Fyfe Latin America. Argueta continued, “We are excited to have joined the larger Aegion organization and expect the resources it brings will further accelerate Fyfe’s growth in Latin America.”
Aegion expects the Fyfe Asia and Fyfe Latin America acquisitions to be accretive to earnings in 2012 (before acquisition transaction expenses). The purchase price for the acquisitions was funded out of the Company’s cash balances and by borrowing $18 million against the Company’s line of credit.
For the year ended December 31, 2011, Fyfe Asia had consolidated revenues and consolidated EBITDA of $25.8 million (USD) and $4.3 million (USD), respectively. For the same period, Fyfe Latin America had consolidated revenues and consolidated EBITDA of $2.2 million (USD) and $800,000 (USD), respectively.
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.
Fyfe Co., a subsidiary of Aegion Corporation, has been a pioneer in adapting fiber reinforced polymer (“FRP”) composites for use in the construction rehabilitation sector including structural repair and reinforcements for buildings, corrosion wrapping for waterfront structures, seismic bracing for structures, leak protection for large diameter pipelines and blast protection for commercial and government properties.
FRP systems use fibers (carbon fiber, fiberglass, Kevlar) in combination with polymlymer resins to form a composite product. FRP materials have revolutionized the aerospace, marine, electrical, corrosion-resistance and transportations industries. FRP composites capitalize on their high strength-to-weight ratio and inherent resistance to weather and the corrosive effects of water, salt air and sea water.
The acquisition of Fyfe Group’s Asian operations, which is based in Singapore, includes its operations in Singapore, Hong Kong, Malaysia, Japan, Indonesia and Brunei. Customers in India and China will be served through an exclusive product supply and license agreement.
Fyfe Group opened its first Asian office in the late 1990s and since that time has grown to nearly 100 employees. The acquisition also includes the patent portfolio of Fyfe Asia. Fyfe Asia will continue to actively research and develop improved products and processes for the structural repair, strengthening and restoration of buildings, bridges and other infrastructure using advanced composites.
J. Joseph Burgess, President and Chief Executive Officer of Aegion Corporation, stated, “The acquisition of the North American business of Fyfe Group, LLC in August 2011 was transformative for our Company and was the foundation for our Commercial & Structural platform. These latest acquisitions execute part of the plan we announced in August to also acquire Fyfe Group’s Asian, European and Latin American operations. We remain focused on continuing to execute that plan and expect to complete the European acquisition within the coming months.”
Burgess continued, “The highly valued management team for Fyfe Asia is led by Mr. Sim Moe Wee, Senior Vice President and General Manager. Mr. Sim will continue in this role and will focus on delivering on high-growth sales goals for each of the Asian operations.”
Mr. Sim commented, "My team and I are thrilled to be a part of the Aegion team. We fully expect that our combination of technology, scale and innovation will accelerate both Fyfe's and Aegion's growth throughout Asia.”
Fyfe’s Latin America operation is headquartered in San Salvador, El Salvador and includes operations in Chile, Columbia, Costa Rica, El Salvador, Panama and Peru. Aegion believes the Latin American region is ripe for growth and expects to build on the successes experienced to date in each of the countries in which Fyfe Latin America operates. Aegion expects that these operational groups, initially organized from 2007 to 2011, will experience robust growth. Aegion expects to invest in developing the market and further expansion in the region.
“The management team of Fyfe Latin America remains in place and will lead this business to increased success,” said Erick Argueta, Managing Director of Fyfe Latin America. Argueta continued, “We are excited to have joined the larger Aegion organization and expect the resources it brings will further accelerate Fyfe’s growth in Latin America.”
Aegion expects the Fyfe Asia and Fyfe Latin America acquisitions to be accretive to earnings in 2012 (before acquisition transaction expenses). The purchase price for the acquisitions was funded out of the Company’s cash balances and by borrowing $18 million against the Company’s line of credit.
For the year ended December 31, 2011, Fyfe Asia had consolidated revenues and consolidated EBITDA of $25.8 million (USD) and $4.3 million (USD), respectively. For the same period, Fyfe Latin America had consolidated revenues and consolidated EBITDA of $2.2 million (USD) and $800,000 (USD), respectively.
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.
Fyfe Co., a subsidiary of Aegion Corporation, has been a pioneer in adapting fiber reinforced polymer (“FRP”) composites for use in the construction rehabilitation sector including structural repair and reinforcements for buildings, corrosion wrapping for waterfront structures, seismic bracing for structures, leak protection for large diameter pipelines and blast protection for commercial and government properties.
FRP systems use fibers (carbon fiber, fiberglass, Kevlar) in combination with polymlymer resins to form a composite product. FRP materials have revolutionized the aerospace, marine, electrical, corrosion-resistance and transportations industries. FRP composites capitalize on their high strength-to-weight ratio and inherent resistance to weather and the corrosive effects of water, salt air and sea water.