MFRI forms join venture with Insituform unit
MFRI forms joint venture to acquire Canadian pipe coating, insulating plant for $11.9 million
On 12:41 pm EDT, Monday October 12, 2009
Buzz up! 0 Print.Companies:Insituform Technologies Inc.MFRI Inc.
NILES, Ill. (AP) -- MFRI Inc. said Monday it has formed a new joint venture to acquire Garneau Inc.'s pipe coating and insulating facilities in Camrose, Canada, for $11.9 million.
The air filter and cooling systems maker said the joint venture, Bayou Perma-Pipe Canada Ltd., is a partnership between its Perma-Pipe Inc. subsidiary and the Bayou Cos., a unit of Insituform Technologies Inc.
The transaction is subject to approval by Garneau's shareholders and other customary conditions. Garneau's shareholders are expected to vote Oct. 28 and the deal is expected to close shortly afterward.
The Camrose facility was built in 1997 and upgraded in 2007. It includes more than 75,000 square feet of space on a 128-acre site.
"This investment is a strategic step for our company," Perma-Pipe President Fati Elgendy said in a statement. "Participating in a coating and insulating facility in Western Canada allows us to better serve our customers in the oil sands and other Canadian energy developments."
Shares of MFRI climbed 40 cents, or 5.7 percent, to $7.47 in afternoon trading. Insituform shares dipped 14 cents to $19.11.
