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