GSE Holding Buys SynTec for $10 Million

On Tuesday, geosynthetic containment solutions manufacturer GSE Holding (NASDAQOTH: GSEHQ  ) 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.


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