Niles, Illinois - A newly formed joint venture between Perma-Pipe Inc. and the Bayou Companies Inc. has acquired a new pipe-coating and insulation facility in Alberta, Canada.
The companies have reached an agreement with Garneau Inc. to acquire the company's Camrose pipe and coating facility for CAN $12.25 million ($11.8 million), subject to approval from Garneau's shareholders, a recent MFRI statement said.
The facility, built in 1997 and upgraded in 2007, includes 75 000-sq.ft (7000-sq.m) of space on its 128 acre site.
"This investment is a strategic step for our company," said Fati Elgendy, president of Perma-Pipe. "Participating in a coating and insulation facility in Western Canada allows us to better serve our customers in the oil sands and other Canadian energy developments," he added.
MFRI Inc.'s subsidiary Perma-Pipe Inc. is a manufacturer of pre-insulated polyurethane foam heating and cooling piping systems in North America and subsea oil applications. The Bayou Companies Inc. is a subsidiary of Instituform - a provider of technologies for rehabilitating water, energy and mining piping systems. (RD)