New York, Dec. 7 – Castle Harlan, Inc., the New York private equity firm, today announced that a definitive agreement has been entered into to sell Tensar Corporation, a portfolio company of Castle Harlan’s fund CHP V, to Commercial Metals Company, headquartered in Irving, Texas.
The transaction is valued at $550 million. The closing is expected to occur promptly following customary regulatory review and subject to customary closing conditions.
Tensar, under Castle Harlan’s ownership, grew worldwide, entered new geographies and introduced new products and technologies that can support its ongoing growth.
“Tensar, a portfolio company of CHP V, has been a successful investment. It has been very gratifying to be able to work with a first-rate management team and to allow the company to grow into becoming the global leader in its field with new products that have a positive impact on addressing the world’s infrastructure needs,” said Marcel Fournier, Senior Managing Director of Castle Harlan. “We are extremely pleased to see the company find its new place alongside CMC’s other complementary operations.”
“We enjoyed working with Castle Harlan over the seven years we were with them,” said Mike Lawrence, CEO of Tensar. “Their advice and guidance proved to be useful to the growth of the company, and they supported us in establishing our industry-leading team of people. We look forward to a strong future in our markets with significant prospects and still many unmet opportunities.”
Morgan Stanley & Co. LLC is acting as financial advisor, and Skadden, Arps, Slate,Meagher & Flom
LLP is acting as legal counsel to Castle Harlan and Tensar in connection with the Transaction.
About Tensar Corporation
Tensar is a leading global maker of geogrid products and geopier foundation improvement
solutions for soil reinforcement in a large variety of infrastructure and construction projects. The
Company serves a broad range of markets from public roads through marine and waterways,
ports, railways, energy, commercial/industrial, airports, military, residential, waste and mining.
Tensar is headquartered in Alpharetta, Georgia.
About Castle Harlan
Castle Harlan, founded in 1987, invests in controlling interests and the development of middle market companies throughout North America, Europe and Australia. Its team of senior investment professionals has completed over 55 acquisitions since its inception, worth an aggregate
enterprise value in excess of $11 billion. The firm traces its roots to the start of the institutionalized private equity business in the late 1960s.
Disclaimer
This release does not constitute an offer to sell or a solicitation to buy any securities in any fund or product offered by Castle Harlan, Inc., or its affiliates, and may not be relied upon in connection with any offer or sale of securities. Such offer or solicitation may only be made pursuant to a current confidential private offering memorandum that will be provided only to qualified offerees.