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New equity partners, debt reduction, name change reposition Contech

Source: Contech Engineered Solutions LLC, West Chester, Ohio

Contech Engineered Solutions, owner of the Con/Span precast arch bridge and Keystone Retaining Wall brands, has announced a recapitalization plan, $125 million long-term credit facility, and $100 million revolving loan commitment in conjunction with a new ownership team involving four equity investors.

The former Contech Construction Products also notes a corporate name change resulting from growth in new markets and build-out of engineering and site solution product lines for the residential, commercial and infrastructure markets. "We do more than provide construction products—we provide innovative engineering and site solutions for world-class customers,” says Contech CEO Ron Keating. "We look forward to working with [our new owners] as we expand Contech's leading global market position, anticipate a successful 2012, and are excited about the many opportunities we see in our target markets."

New to the Contech ownership team are Anchorage Capital Group, Littlejohn & Co., Tennenbaum Capital Partners, and Farallon Capital Management. Wells Fargo Bank N.A. is the administrative agent for the new credit facility securing long-term financing. As part of recent financing agreements, new ownership structure and ongoing capital improvement initiatives, the company has successfully removed all of its past revolving and term loan obligations.

"This is another milestone, as we now have the capital structure to execute on our strategy of enhancing product and service offerings and building our market-leading positions across the globe,” Keating concludes. “Over the past two years, we have successfully removed over $600 million of debt and created almost $100 million of liquidity under our new revolver. We have the necessary resources to grow and commitment from leadership to deliver the best customer experience in the industry.”