Altamont Capital has acquired New Iberia, Louisiana-based The Bayou Companies, a pipeline coatings and insulation provider. No financial terms were disclosed.
Palo Alto, CA, and New Iberia, Louisiana – September 4, 2018 –Altamont Capital Partners (Altamont) today announced the acquisition of the assets of The Bayou Companies, LLC (Bayou), a leading pipeline coatings and insulation provider based in New Iberia, Louisiana. Founded in 1942, Bayou was acquired by Aegion Corporation (AEGN) in 2009.
Bayou is widely recognized as a market leader in onshore pipe coatings and offshore coatings and insulation, including highly-specialized insulation for the oil & gas industry. Throughout its long history, Bayou has been a reliable partner for its customers across its mission-critical suite of services and has continued to invest in capabilities that match the increasingly complex demands of the pipeline community. Bayou’s industry-leading suite of products includes the recent development and application of HT-200, the only deep-water insulation coating rated to 360 degrees Fahrenheit. Under Aegion’s ownership, Bayou has invested significantly in building out world-class facilities in its strategically located New Iberia location. Bayou’s prime location and expansive manufacturing and storage footprint provides efficient logistics and seamless operations for its customers.
Bayou will continue to be managed by the existing team led by Evan Russell, President. As part of the transaction, Altamont’s Senior Advisors Ed Will and Pete Lane will join the Board of Bayou. Lane, an industry veteran with extensive experience building global businesses in the oil and gas sector, including operating roles at Schlumberger and as CEO at Axip Energy Services, will join as Executive Chairman of Bayou. In addition, Will brings over 35 years of oilfield experience, most recently as the VP of Marketing and Strategy at Cameron International.
Commenting on the deal, Pete said “Bayou has a fantastic heritage and set of capabilities. Bayou’s return to operating as a standalone company will be transformational for its employees and customers, and a catalyst to accelerate its growth.” Adding to this, President Evan Russell noted “Bayou is a company that has a great history and an even better future. The entire Bayou team looks forward to working with Altamont to realize our great potential.”
Commenting on the acquisition, Randall Eason, Managing Director of Altamont, said: “We are thrilled to partner with Evan, Pete, Ed, and the team at Bayou to continue their expansion into new products and markets. We believe our patient capital and track record of building businesses will help Bayou capitalize on a compelling market opportunity.” Iain Bridges, Principal at Altamont, added: “Bayou represents our seventh corporate carveout. We believe our experience in similar situations and our industry resources provide value-added support to management as they continue to innovate and pursue growth opportunities.”
About Altamont Capital Partners
Altamont Capital Partners is a private investment firm based in the San Francisco Bay Area with more than $2.5 billion of assets under management. Altamont is focused on investing in middle market businesses where it can partner with leading management teams to help its portfolio companies reach their full potential. The firm’s principals have significant experience building business success stories across a range of industries, including consumer/retail, industrials, healthcare and financial services.