Apax Partners completes acquisition of CONTECH; CONTECH realigns for improved customer service and growth
1 February 2006
New York , 1 February 2006 CONTECH
Construction Products Inc., a leading civil engineering site
solutions products and services company, and funds advised by Apax
Partners Worldwide, one of the world's leading private equity
investment groups, today announced that Apax Partners Worldwide
have completed their acquisition of a majority ownership interest
in CONTECH. The transaction had a total enterprise valuation of
more than $1 billion.
"This is a very exciting time for us. Apax Partners brings
strong financial resources and a well-established international
presence to CONTECH. We welcome their expertise as we identify
value-creating, add-on acquisitions to grow our business and
provide our customers with solutions that will meet their needs and
add dollars to their bottom line," said Patrick Harlow, chairman
and chief executive officer of CONTECH Construction Products
Inc.
David Kim, partner of Apax Partners, commented, "Apax
Partners is fortunate to have the opportunity to partner with
CONTECH's unusually talented management team. We look forward to
working together as they continue to grow this outstanding company
organically and through acquisitions."
In addition, CONTECH has announced a market focused
realignment of its business. The new organization will consist of
four operating divisions: Environmental Stormwater Solutions,
Bridge Solutions, Earth Stabilization Solutions, and Drainage
Solutions as well as a new national sales organization--CONTECH
Sales, which will be responsible for selling all of the company's
products. The organizational realignment will enable CONTECH to
better serve its customers and more effectively accommodate
expected rapid future growth.
"The breadth of CONTECH's product offering has grown
significantly in the past five years," according to Godfrey Little,
chief operating officer of CONTECH. "That growth requires that we
now realign our business to ensure we maintain the proper marketing
and customer focus. It will enable our engineering and commercial
resources to be experts in the areas most important to our
customers. Whether it's a CON/SPAN bridge, a Vortechs stormwater
treatment unit, or a Tensar geogrid, the realignment will provide
our customers with a very clear, single-source contact and assure
that our market-focused organization is providing the best in
cutting edge products, technology, and cost effective
solutions."
Ohio-based CONTECH is a recognized industry leader in the
design, manufacture and distribution of specialty construction
products sold to the civil engineering infrastructure sector of the
heavy construction industry. The company's sales are approximately
$750 million and have grown at a double digit rate over the last 5
years. The realignment positions the company to continue its
impressive performance and offer additional customer
value.
Acquisition
Notes
As previously announced, Harlow and the executive
management team will continue to serve in their current capacities
at CONTECH. Their investment in the recapitalized company will give
them a significant minority ownership interest.
Wachovia Securities provided advisory services to Apax
Partners and also led the senior financing for the transaction.
Goldman Sachs Mezzanine Partners led the mezzanine financing for
the transaction.
About
CONTECH
Headquartered in West Chester, OH, CONTECH is an industry
leader and the only nationwide manufacturer in the emerging and
expanding stormwater, bridge, drainage and earth stabilization
markets. CONTECH's expansive offering includes well-known products
such as: Vortechs, StormFilter, Enviropod and Optimizer underground
stormwater management systems; Continental, CON/SPAN, Steadfast and
BEBO bridges; Keystone Retaining Walls; and Armorflex and A-Jacks
hard armor. CONTECH has more than 1800 employees nationwide and
offices in every major U.S. city. Additional information on CONTECH
is available at http://www.contech-cpi.com/
.
About Apax
Partners
Apax Partners is one of the world's leading private equity
investment groups. It operates across the United States, Europe and
Israel and has more than 30 years of investing experience. Funds
under the management or advice of Apax Partners total $20 billion
around the world. These Funds provide long-term equity financing to
build and strengthen world-class companies. The Funds pursue a
multi-stage equity investment strategy, investing in buyouts,
growth capital and late venture.
Apax Partners Funds invest in companies across its global
sectors of Tech & Telecom, Retail & Consumer, Media,
Healthcare and Financial & Business Services. Apax Partners'
investments in the building products industry include Norcraft
Cabinets, RSI Home Products, and Empire Pacific Windows.
For additional information, see: http://www.apax.com/
Contacts:
CONTECH
Kellie Grob, APR
Director, Marketing Communications
CONTECH Construction Products Inc.
9025 Centre Pointe Dr., Suite 400
West Chester, OH 45069
T: +1 513 645 7182
E: grobk@contech-cpi.com
Apax Partners
Ben Harding
Head of Communications
T: +44 20 7872 6300
E: ben.harding@apax.com