Note 14 - Subsequent Events

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

14. SUBSEQUENT EVENTS

Sale of Certain Assets of Insituform Netherlands

On October 11, 2019, the Company sold its CIPP contracting operations of Insituform Netherlands to GMB Rioleringstechnieken B.V., a Dutch company (“GMB”).  The CIPP contracting operations of Insituform Netherlands were part of the Company’s Infrastructure Solutions segment.  The Company retained certain assets relating to the wet-out facility in The Netherlands and will continue such operation in order to provide liners in continental Europe as part of the Company’s tube manufacturing and product sales business.  In connection with the sale, the Company entered into a five-year tube supply agreement whereby GMB will buy liners from the Company.  During the second quarter of 2019, the Company recorded an impairment charge of $3.9 million to adjust carrying value to the expected fair value less cost to sell.  No additional impairment charges are expected to be recorded as the net carrying value approximated or was less than the sale price of the assets.

Sale of United Mexico

On October 11, 2019, the Company sold its fifty-five percent (55%) interest in United Mexico, its Mexican Tite Liner^® joint venture, to its joint venture partner, Miller Pipeline de Mexico, S.A. de C.V., a Mexican company (“Miller”).  Miller owned the remaining forty-five percent (45%) interest in United Mexico.  United Mexico served as the Company’s pipe lining operation in Mexico and was part of the Company’s Corrosion Protection segment.  In connection with the sale, the Company entered into a long-term license agreement pursuant to which United Mexico will be the exclusive licensee in Mexico with respect to certain trademarks, patents and other intellectual property relating to the Company’s pipe lining business.  The Company further expects to enter into a long-term agreement for the supply of equipment and consumables as well as the provision of services to United Mexico.  During the second quarter of 2019, the Company recorded an impairment charge of $1.8 million to adjust carrying value to the expected fair value less cost to sell.  No additional impairment charges are expected to be recorded as the net carrying value approximated or was less than the sale price.