Geomembrane maker GSE completes IPO

By Frank Esposito
Senior Staff Reporter

Published: February 15, 2012 6:00 am ET

Related to this story

Topics Construction, Mergers & Acquisitions, Film & Sheet

HOUSTON (Updated Feb. 16, 4:20 p.m. ET) — GSE Holding Inc., a Houston-based maker of polyethylene geomembranes and liners, went public with a stock offering on Feb. 10.

GSE’s per-share stock price opened at $10.30 on Feb. 10 and was at $11.85 in late trading Feb. 16 for an increase of 15 percent. The initial public offering originally had 7 million shares expected to be priced at $9 per share.

The firm had planned to go public in December, but delayed that move because of market conditions. GSE employs almost 600 and had sales of about $460 million in 2011 - an increase of about 35 percent vs. 2010. The firm’s 2011 profit also grew almost 50 percent to $44 million.

In a public filing, GSE officials said the firm leads the global geomembrane market with a 24 percent share. Major end use markets for GSE’s geomembranes and liners include mining, waste management, liquid containment, coal ash containment and shale oil and gas.

GSE president and chief executive officer Mark Arnold said in a Feb. 16 phone interview that his firm will use proceeds from the IPO to pay down debt and “to fund the next stage of our growth.” GSE has total debt of about $200 million.

“As we grow, we needed to expand our working capital,” Arnold added. “We’re the industry leader, and because of that our customers look to us for new products and to solve problems.”

That growth will include a new production plant at an undisclosed location, Arnold said. New production capacity will be added by the end of the year at GSE’s plants in Houston; Kingstree, S.C.; Egypt and Thailand, he added. The firm also operates plants in Spearfish, S.D.; Germany and Chile. GSE generates almost 60 percent of its sales from outside North America.

The new capacity also will create new jobs. “We are definitely a job creator,” Arnold said. He added that GSE has seen solid growth in the mining sector, where its products are used for containment and drainage. The shale oil and gas sector holds great potential, Arnold said, but it’s not currently GSE’s largest growth market.

For full-year 2010, GSE’s sales grew 18 percent to almost $343 million. Pretax profit for 2010 increased about 33 percent to more than $28 million, but GSE still posted an overall loss of about $16 million for the year.

GSE was founded as Gundle Corp. in 1981 and grew through acquisitions before being bought by Chicago private equity firm CHS Capital LLC in 2004. GSE ranked 48th in a recent Plastics News ranking of North America’s largest film and sheet makers, with related sales estimated at $135 million.


Comments

Geomembrane maker GSE completes IPO

By Frank Esposito
Senior Staff Reporter

Published: February 15, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Residential construction set for steady growth

July 31, 2014 10:27 am ET

After a sluggish start to the year, activity levels in the residential construction sector gained momentum in the second quarter of this year. The...    More

Private equity firm buys majority share of truck accessory maker

July 31, 2014 10:30 am ET

A majority share of Ann Arbor, Mich.-based truck accessory manufacturer Tectum Holdings Inc. has been acquired by Boston-based private equity firm TA ...    More

Image

Impact-resistant window maker buys competitor for $111 million

July 31, 2014 3:07 pm ET

PGT Inc. is acquiring CGI Windows & Doors Holdings Inc. for $111 million as part of a plan to grow strategically by buying businesses with...    More

Buyer plans to sell former Hoover molding, assembly plants

July 31, 2014 2:06 pm ET

A former Hoover manufacturing plant with 150 injection machines in El Paso, Texas, and a nearby maquiladora plant in Juarez, Mexico, changed owners...    More

Image

Castle Harlan buys landscape erosion control firm Tensar

July 30, 2014 3:46 pm ET

Private equity group Castle Harlan inc. has acquired Atlanta-based Tensar Corp., with plans for the geosynthetic products maker and its subsidiaries t...    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events