Nov 29, 2005

Apax Partners, L.P. to Acquire Majority Ownership Interest in CONTECH Construction Products, Inc.

Recapitalization Valued in Excess of $1 Billion

CONTECH Construction Products, Inc., a civil engineering site solutions products and services company, and Apax Partners, L.P., a private equity investment group, 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 Corp. and management since 1997.
Patrick Harlow, chairman and CEO 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 growth has been driven by high-growth construction markets such as environmental stormwater management, engineered spans, 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.