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

Producers urge booming Brazilian housing market to use EPS

April 18, 2014 1:08 pm ET

Leaders in Brazil's plastics industry are asking lawmakers to mandate the use of expandable polystyrene (the raw material for expanded EPS) in new...    More

JM Eagle reopens shuttered Colorado plant with 8 PVC lines

April 18, 2014 1:02 pm ET

JM Eagle has reopened its Pueblo, Colo., plant with eight PVC pipe extrusion lines back in operation following an 18-month shutdown.    More

PolyQuest spins off FiberQuest unit

April 18, 2014 10:14 am ET

PolyQuest Inc. has spun off its FiberQuest unit — which distributes polyester staple fibers and cotton — as a separate company.    More

Spain's Cristian Lay Group buys two materials units of bankrupt LSB

April 17, 2014 11:11 am ET

Spanish industrial conglomerate Cristian Lay Group has purchased two of the bankrupt Spanish PET packaging group La Seda de Barcelona.    More

MGS buying N.Y. medical molding plant from Hospira

April 17, 2014 10:19 pm ET

MGS Manufacturing Group is purchasing the Buffalo, N.Y., injection molding facility and related product line of Hospira Inc., effective July 1. Terms ...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

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

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events