GSE Holding Buys SynTec for $10 Million
On Tuesday, geosynthetic containment solutions manufacturer GSE Holding announced that it has acquired Baltimore-based peer SynTec LLC, for approximately $10 million in cash.
In a press release, GSE described its new subsidiary as "a proven leader and manufacturer of geosynthetic drainage and soil reinforcement products," and estimated SynTec's annual revenues at approximately $20 million.
This means the acquisition comes at a price-to-sales ratio of roughly 0.5, which is a significant premium to the 0.3-times-sales ratio that GSE's own shares currently command.
SynTec's $20 million in revenues are about 4% of its new parent's annual sales. Co-founders Giovanni Capra and Aigen Zhao will remain with GSE after the acquisition.
The article GSE Holding Buys SynTec for $10 Million originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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