Solmax completed its acquisition of Propex, a leading North American geosynthetics manufacturer with a strong track record in the construction, transportation, flood protection and automotive industries.
An award-winning manufacturer and low-carbon solutions provider, Propex boasts a storied history and an enviable reputation for innovation, expertise, service excellence and value. Producing a wide range of geosynthetic products and erosion control systems, its products are used in the construction of key infrastructural projects including levees, roads, bridges and airports. Leveraging geotextiles in transportation construction and erosion control applications has the potential to save billions of dollars in construction costs annually.
Propex’s innovative geotextiles are manufactured in Ringgold, Ga., and shipped to customers in more than 35 countries worldwide. The Ringgold manufacturing and distribution plant also houses an on-site testing facility that is certified by the Geosynthetic Accreditation Institute/Laboratory Accreditation Program (GAI-LAP), and is compliant with ISO 9001 and 14001.
“We are delighted to complete this important acquisition. Propex is a recognized leader in geosynthetic products and solutions across North America,” says John Henderson, president of Solmax Americas. “This acquisition expands the products and solutions that Solmax can offer its customers in many different market segments. It also provides us with additional nonwoven geotextile expertise and capacity to further extend our footprint in the environmental and civil-infrastructure markets.”
“The combination of strengths between our companies will lead to long-term growth and increased capacity to address the expanding demand for environmentally sustainable solutions,” says Mike Gorey, CEO of Propex. “As the leading player of infrastructure products and services, we harness the ability to increase the adoption rate of superior solutions over traditional methods.”
The purchase of Propex complements Solmax’s existing product portfolio by expanding its presence into the turf-reinforcement market, with a focus on erosion control on steep slopes and vegetated waterways, a new market for Solmax. In addition, innovative products that have been developed by Propex for the pavement-rehabilitation market will also complement Solmax’s portfolio.
Going forward, it will be business as usual for Solmax and Propex in the short term. In time, the expertise of both companies will be combined across all facets of the business.
For this transaction, K & L Gates LLP and Jones Day acted as legal advisors to Solmax. Barclays and TD Securities acted as joint financial advisors, underwriters, joint bookrunners and joint-lead arrangers for the Solmax senior credit facilities. Solomon Partners acted as financial advisor to Propex, and Stroock acted as its legal advisor.