Apax Partners completes acquisition of CONTECH

CONTECH Construction Products Inc., a leading civil engineering site solutions products and services company, and funds advised by Apax Partners Worldwide, one of the world's leading private equity investment groups, today confirmed that Apax Partners Worldwide have completed its acquisition of a majority ownership interest in CONTECH. The transaction had a total enterprise valuation of more than $1 billion...

Feb 1st, 2006

WEST CHESTER, OH, & NEW YORK, Feb. 1, 2006 -- CONTECH Construction Products Inc., a leading civil engineering site solutions products and services company, and funds advised by Apax Partners Worldwide, one of the world's leading private equity investment groups, today confirmed that Apax Partners Worldwide have completed its acquisition of a majority ownership interest in CONTECH. The transaction had a total enterprise valuation of more than $1 billion.

"This is a very exciting time for us. Apax Partners brings strong financial resources and a well-established international presence to CONTECH. We welcome their expertise as we identify value-creating, add-on acquisitions to grow our business and provide our customers with solutions that will meet their needs and add dollars to their bottom line," said Patrick Harlow, CONTECH chairman and CEO.

David Kim, partner of Apax Partners, commented, "Apax Partners is fortunate to have the opportunity to partner with CONTECH's unusually talented management team. We look forward to working together as they continue to grow this outstanding company organically and through acquisitions."

In addition, CONTECH has announced a market focused realignment of its business. The new organization will consist of four operating divisions: Environmental Stormwater Solutions, Bridge Solutions, Earth Stabilization Solutions, and Drainage Solutions as well as a new national sales organization--CONTECH Sales, which will be responsible for selling all of the company's products. The organizational realignment will enable CONTECH to better serve its customers and more effectively accommodate expected rapid future growth.

CONTECH Organizational Realignment: Business Divisions
• Environmental Stormwater Solutions: Rick Stepien, President - Responsibility for Stormwater 360 produced stormwater treatment products, all retention/detention products and any partner supplied stormwater management or treatment solutions.
• Bridge Solutions: Tim Beach, President - Responsibility for all bridge products and licensee relationships. Encompasses BEBO, BridgeTek, CON/SPAN, Continental, Steadfast, SuperSpan, Multi-Plate and other related product lines.
• Earth Stabilization Solutions: Bill Dawson, President - Responsibility for erosion control and soil stabilization solutions including Keystone Retaining Wall Systems, Armortec products, geotextiles, geosynthetics and all other partner supplied earth stabilization products.
• Drainage Solutions: Joe Cutillo, President - Responsibility for all pipe products, metal and plastic. Will provide corporate-wide support and coordination for capital projects, process improvement and quality systems, and safety, health and environmental affairs.
• CONTECH National Sales: Steve Spanagel, President - Responsibility for the sale and distribution of all CONTECH products, corporate marketing communications and commercial risk management.

"The breadth of CONTECH's product offering has grown significantly in the past five years," according to Godfrey Little, chief operating officer of CONTECH. "That growth requires that we now realign our business to ensure we maintain the proper marketing and customer focus. It will enable our engineering and commercial resources to be experts in the areas most important to our customers. Whether it's a CON/SPAN bridge, a Vortechs stormwater treatment unit, or a Tensar geogrid, the realignment will provide our customers with a very clear, single-source contact and assure that our market-focused organization is providing the best in cutting edge products, technology, and cost effective solutions."

Ohio-based CONTECH is a recognized industry leader in the design, manufacture and distribution of specialty construction products sold to the civil engineering infrastructure sector of the heavy construction industry. The company's sales are approximately $750 million and have grown at a double-digit rate over the last 5 years. The realignment positions the company to continue its impressive performance and offer additional customer value.

As previously announced, Harlow and the executive management team will continue to serve in their current capacities at CONTECH. Their investment in the recapitalized company will give them a significant minority ownership interest. Wachovia Securities provided advisory services to Apax Partners and also led the senior financing for the transaction. Goldman Sachs Mezzanine Partners led the mezzanine financing for the transaction.

With headquarters in West Chester, OH, CONTECH (www.contech-cpi.com) is an industry leader and the only nationwide manufacturer in the emerging and expanding stormwater, bridge, drainage and earth stabilization markets. CONTECH's expansive offering includes well-known products such as: Vortechs, StormFilter, Enviropod and Optimizer underground stormwater management systems; Continental, CON/SPAN, Steadfast and BEBO bridges; Keystone Retaining Walls; and Armorflex and A-Jacks hard armor. CONTECH has more than 1800 employees nationwide and offices in every major U.S. city.

Apax Partners (www.apax.com) is one of the world's leading private equity investment groups. It operates across the United States, Europe and Israel and has more than 30 years of investing experience. Funds under the management or advice of Apax Partners total $20 billion around the world. These Funds provide long-term equity financing to build and strengthen world-class companies. The Funds pursue a multi-stage equity investment strategy, investing in buyouts, growth capital and late venture.

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