Arcapita Bank B.S.C.(c) – a leading international investment firm, headquartered in Bahrain, announced today that it has completed the acquisition of The Tensar Corporation, LLC, one of the leading providers of highly engineered, technology-driven construction site solutions in North America, for a total transaction value of approximately $405 million.
Tensar’s integrated suite of over 50 products and services provide soil stabilization, earth retention, foundation support and erosion and sediment control. Tensar’s customers include commercial, industrial and residential site developers, resource extractors, transportation authorities, coastal and waterway authorities, and waste management companies.
Commenting on the transaction, Atif Abdulmalik, CEO of Arcapita, said “Tensar’s brand name, successful 20-year operating history, strong distribution network, manufacturing know-how and portfolio of over 70 patents provides the company with a formidable set of attributes to maintain and grow its market share. In addition, changing industry and environmental requirements are expected to play to Tensar’s strengths and further enhance its competitive position.’’
Charlie Ogburn, global head of Arcapita’s corporate investments, said “Tensar’s commitment to the technology embedded in its products gives it a significant edge over competitors. In a market that is worth nearly $4 billion annually, only 13% has been captured by Tensar’s type of non-traditional technology-driven products, leaving significant room for further growth, both for the industry overall and particularly for Tensar, given its position as a dominant operator in the sector.”
Mr Abdulmalik concluded, ‘’With the completion of this transaction, we look forward to working together with Tensar’s outstanding management team, whose track record and long-term commitment to the company is a valuable asset. Along with a number of our other recent acquisitions in the US and Europe, such as Falcon Gas Storage, Church’s Chicken and South Staffordshire Water, the Tensar acquisition provides our GCC clients with further access to high quality, high growth investment opportunities from around the world”.
The acquisition represents the largest equity commitment made by Arcapita for a corporate investment. The $177 million Shari’ah compliant senior financing, led by Credit Suisse First Boston, was oversubscribed and priced significantly below the initial commitment, reflecting the B2 credit rating awarded by Moody’s, and making Tensar Arcapita’s highest rated corporate deal to date.
ABOUT ARCAPITA
Headquartered in Bahrain with offices in Atlanta and London, Arcapita’s three principal lines of business are corporate investment, real estate investment and asset-based investment. To date, the Bank has completed 44 transactions with a total value exceeding $9 billion and has an equity capital base in excess of $300 million. Arcapita’s mission is to provide innovative and distinctive Shari’ah compliant investment opportunities that generate superior risk-adjusted returns.
