Gundle/SLT Environmental Inc. of Houston is adding blown-film geomembrane to its list of extruded products made outside the United States with the acquisition of British geomembrane manufacturer SGS Geosystems Ltd. Gundle did not reveal what it paid for the Soham, England-based firm, but it did note that the deal involved a combination of cash and the assumption of debt.
It is the first acquisition by the company since the $71 million merger of SLT Environmental Inc. of Conroe, Texas, with Gundle Environmental Systems Inc. of Houston in July.
The purchase of the English company means the combined concern now has 250 million pounds of capacity in the impermeable geomembrane market,or about half the world market, according to Gundle/SLT spokesman Roger J. Klatt.
Extruded membranes of this variety are used as liners beneath road surfaces and as leaching barriers for pollution control in landfills and hazardous chemical pits.
Klatt said SGS is a blown-film producer and a company operation in Germany produces the generally thicker, flat-cast extruded films. U.S. operations for Gundle/SLT produce both extrusion varieties, he said.
Klatt said as a result of the 1995 merger and a subsequent $15.3 million charge against earnings in fiscal year 1995, Gundle/SLT has eliminated most of its compounding capabilities.
``One of the assets we charged off after the merger was the compounding. We buy our [PE] pellets from the resin manufacturers,'' Klatt said.