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Insituform Technologies Buys Bayou

February 24, 2009 (FinancialWire) -- Insituform Technologies, Inc. (NASDAQ: INSU) has closed its acquisition of the business and assets of The Bayou Cos., L.L.C., a privately-held firm based in Louisiana that provides products and services to the oil and natural gas industries based.

The cash purchase price of $125 million payable at closing was financed primarily with the net proceeds of a public offering of 10.35 million shares of Insituform's common stock, which was launched on February 17.

Bayou's members may also be paid up to an additional $7.5 million, plus 50% of excess earnings, upon achievement by the former Bayou business of designated earnings targets during 2009, 2010 and 2011.

New Iberia, Louisiana-based Bayou is a provider of products and services to the on-shore and off-shore oil and natural gas industries, primarily in the Gulf of Mexico and North America. Bayou's products and services include internal and external pipeline coating, lining, weighting and insulation. Bayou also provides specialty fabrication and services for off-shore deepwater installations, including project management and logistics.

For the twelve months ended September 30, 2008, Bayou reported net revenues of $129.3 million and income from continuing operations of $18.3 million.

In connection with the acquisition of Bayou's assets, Insituform also completed the acquisition of noncontrolling membership interests of two of Bayou's subsidiaries, Commercial Coating Services International and Bayou Welding Works. The purchase price for these noncontrolling interests was $8.5 million, payable $4.5 million in cash, $2.5 million in Insituform common stock and $1.5 million in a six-month promissory note.

Chesterfield, Missouri-based Insituform Technologies is a provider of proprietary technologies and services for rehabilitating sewer, water and other underground piping systems without digging or disruption.

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