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

RPC Group buying Iceland's Promens

November 27, 2014 8:46 am ET

In a major acquisition that combines two rigid packaging companies with international footprints, RPC Group plc has signed a 399 million euro ($497...    More

Image

Proposed green building standard delayed until late 2016

November 27, 2014 6:00 am ET

Anyone not ready for a new green building standard — one that may include more favorable ratings for plastics — is getting something of a ...    More

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla...    More

Image

Irish packaging group Smurfit Kappa opens film plant in Spain

November 26, 2014 6:00 am ET

Global packaging group Smurfit Kappa Group plc has responded to growing demand for its bag-in-box liquid container/dispensers by opening a new plant i...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events