Solmax announced it has reached an agreement with Koninklijke TenCate (the Netherlands) on the acquisition of TenCate Geosynthetics, a global provider of geosynthetics and industrial fabrics. Caisse de Dépôt et Placement du Québec (CDPQ) and Fonds de Solidarité FTQ, Solmax’s long-term financial partners, are both investing in this transaction.
“This is the joining of two leading companies in their respective segments, recognized globally for the quality of their products and services, that are bringing their geosynthetic products together under the same roof for the first time,” said Jean-Louis Vangeluwe, president of Solmax. “This transaction will increase their products’ use in civil engineering, road infrastructure, hydraulic and environmental works. The size, capacity for innovation, geographic reach and resources of the new organization will further enhance the better position of geosynthetics as important products in the construction sector. This is a game changer in the history of geosynthetic manufacturers that develop lesser-known engineered products that are essential to protecting the environment and developing infrastructure projects.”
“I am highly pleased to position our company alongside Solmax,” said Wally Moore, CEO of TenCate Geosynthetics. “We both are among the leaders in our respective segments and now we will join to create a stronger global leader in geosynthetics. The long-term vision of Solmax around sustainability aligns very well with that of TenCate Geosynthetics, and I am energized to lead my team confidently into this new business environment where we can contribute even more value together.”
The financial terms and conditions of the transaction were not disclosed. The transaction is expected to close in the second quarter of 2021 and is subject to customary approvals by regulatory authorities. The agreement is also subject to completion by TenCate Geosynthetics of applicable employee participation procedures, including consultation with its works council in the Netherlands.
Barclays acted as exclusive financial advisor and Jones Day acted as legal advisor to Solmax. Barclays and TD Securities are acting as underwriters, joint bookrunners and joint lead arrangers for the Solmax senior credit facilities. William Blair International Ltd. acted as exclusive financial advisor and Clifford Chance LLP acted as legal advisor to TenCate.