Solmax announces it has completed its acquisition of Propex, a geosynthetics manufacturer with a track record in the construction, transportation, flood protection, and automotive industries. With the closing of this transaction, Solmax further reinforces its position as a leading geosynthetics-solutions provider, said officials.
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," said officials. Producing a wide range of geosynthetic products and erosion control systems, its solutions are used in the construction of 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 geotextiles are manufactured in Ringgold and shipped to customers in more than 35 countries worldwide. The plant also houses an on-site testing facility that is certified by the Geosynthetic Accreditation Institute/Laboratory Accreditation Program and is compliant with ISO 9001 and 14001.
Commenting on the acquisition, John Henderson, president of Solmax Americas, said, “We are delighted to complete this important acquisition. Propex is a recognized leader in geosynthetic products and solutions across North America. This acquisition expands the products and solutions that Solmax can offer its customers in many different market segments. It also provides us with additional non-woven geotextile expertise and capacity to further extend our footprint in the environmental and civil-infrastructure markets.”
Mike Gorey, CEO of Propex added, “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. 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. This is a new market segment for Solmax and is another value-added solution for its customers and the engineering community globally. 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, covering manufacturing excellence, quality systems, and engineering solutions for the global geosynthetics community. Both companies share a common vision of protecting the environment in a responsible manner to make a better future for all.
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 exclusive financial advisor to Propex and Stroock acted as its legal advisor.