Aegion Corp. Acquires Brinderson L.P., an Integrated Oil and Gas Services Provider

Aegion Corp. (Nasdaq Global Select Market: AEGN) has announced theexecution of a definitive agreement to acquire the equity shares of Brinderson,L.P. and related entities for a purchase price of $150 million. Aegion expects toclose the acquisition on or around July 1, 2013.

Brinderson is a leading integrated service provider of maintenance,construction, engineering and turnaround activities for the upstream anddownstream oil and gas markets. Primarily focused on serving large oil and gascustomers in California, Brinderson’s competitive advantages include itsindustry-leading safety record, a strong reputation for reliability and qualityand comprehensive solutions needed for major refinery maintenance, repairs andretrofits. These core competencies position Brinderson to meet the growingdemand for non-discretionary operating and maintenance expenditures. Through long-termcontracts and nearly 40 master service agreements, Brinderson derivesapproximately 75 percent of its revenues from recurring activities. For the 12months ended March 31, 2013, Brinderson’s revenues totaled approximately$231 million and adjusted EBITDA was $23.8 million.

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Aegion president and CEO J. Joseph Burgess said, “We are pleased Brindersonis joining Aegion’s Energy & Mining platform, opening for us a new endmarket for themaintenance of upstream and downstream energy facilities. Aegion plans tocompete across a broaderportion of the energy value chain with an $800 million to $900 million Energy& Mining platform dedicated to preserving and rehabilitating criticalpipeline assets, as well as maintaining the facilities used for processing andrefining oil and gas products. Following the acquisition, Aegion’s Energy &Mining revenues from recurring operating and maintenance activities are expectedto exceed 50 percent, compared to 45 percent prior to the acquisition. Thistransaction marks the beginning of a strategic effort to expand ourcapabilities in this important sector of the United States energy market.”

Commenting on the acquisition, Brinderson president and CEO Russell Condasaid, “We successfully transformed Brinderson over the last five years from a construction-basedcompany supporting new capital spend in oil refineries into an integrated, full-service company providing long-termmaintenance programs and other key services to our clients. Aegion will help usaccess new markets within the United States and support the continued growth weexpect in our core West Coast market. In turn, Brinderson provides Aegionaccess to the upstream and downstream markets through long-term relationshipswith large, blue chip companies. The transformation of the United States energymarket towards self-reliance is expected to bring significant investment in therefining and petrochemical segment. As a partner with Aegion, Brinderson iswell positioned to assist its clients with this anticipated growth.”

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Brinderson’s senior management team, including Russell Conda, will remainwith the company after the transaction closes. These executives have, onaverage, more than 25 years of industry experience serving the oil and gasindustry.

 

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