Solmax acquires TenCate Geosynthetics to become world's largest Geo player
Solmax, the global leader in the production of high-quality polyethylene geomembranes for industrial and environmental applications today announces it has reached an agreement with Koninklijke Ten Cate (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. This transaction will increase their products' use in civil engineering, road infrastructure, hydraulic and environmental works," said Jean-Louis Vangeluwe, President of Solmax. "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. We both are among the leaders in our respective segments and now we will join together 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", said Wally Moore, CEO of TenCate Geosynthetics.
"I'm delighted to see the family grow again. The addition of TenCate Geosynthetics to Solmax will have a positive overall effect on the geosynthetics sectors. Together, with our products, services and available resources, we will be able to make an impact on the quality of lives of individuals and society as a whole. I would also like to acknowledge the support of CDPQ and Fonds de solidarité FTQ in this transaction. They are two long-term partners that are always there for our business-transforming projects," concluded Jacques Côté, Founder and Executive Chairman of the Board of Solmax.
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.