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Apax Partners, L.P. to Acquire Majority Ownership
Interest in CONTECH Construction Products Inc.
Apax Partners, L.P. to Acquire Majority Ownership Interest in CONTECH
Construction Products Inc. in Recapitalization Valued in Excess of $1
Billion
West Chester, OH and New York, NY - November 28, 2005 - CONTECH
Construction Products Inc., a leading civil engineering site solutions
products and services company, and Apax Partners, L.P., one of the
world's leading private equity investment groups, today announced that
funds advised by Apax Partners will acquire a majority ownership
interest in CONTECH. The transaction, which is expected to close in
January 2006, has a total enterprise valuation of in excess of $1
billion. Members of CONTECH management will invest in the recapitalized
company, giving them a significant minority ownership interest.
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 diversified across end markets
including highway, residential construction, commercial construction,
and other industrial applications. CONTECH has been owned by Butler
Capital Corporation and management since 1997.
Patrick Harlow, Chairman and chief executive officer of CONTECH
Construction Products Inc., said, "The CONTECH management team selected
Apax Partners as our partner because they share our vision for Contech's
future growth. Apax Partners brings strong financial resources and
well-established international presence that will help CONTECH develop
into a multi-billion dollar global leader in construction products.
CONTECH's attractive growth has been driven by high-growth construction
markets such as environmental stormwater management, engineered spans,
and earth stabilization and erosion control. CONTECH's national sales
and marketing organization of more than 450 people and the quality and
breadth of services they provide has been a key factor in the company's
success.
Harlow and the rest of the CONTECH executive management team will
continue to serve in their current capacities upon completion of the
transaction.
Apax Partners, L.P. co-CEO, John Megrue commented, "This is an important
transaction for Apax Partners, as it further strengthens our focus on
relationship investing in an industry sector where we have deep
experience."
David Kim, partner, Apax Partners, added, "CONTECH is an outstanding
company that, under the leadership of Pat Harlow and a very talented
management team, has achieved exceptional results in sales and
profitability through both acquisitions and organic growth. I've known
Pat for a long time, and I have an incredible level of respect and
admiration for him. We are fortunate to have the opportunity to partner
with Pat and his team."
Wachovia Securities is providing advisory services to Apax Partners as
well as leading the senior financing for the transaction. Goldman Sachs
Mezzanine Partners will be leading the mezzanine financing for the
transaction. Ropes & Gray LLP is serving as legal counsel to both Apax
Partners and CONTECH. |
