Kordsa to acquire two US companies
Kordsa, a Sabancı Holding subsidiary, has entered into a definitive purchase agreement to acquire two advanced composite technology companies in the US-Fabric Development Inc. (FDI) and Textile Products Inc. (TPI) for an investment of around $ 100 million. With this move, Kordsa will strengthen its position in the US and will become a strong player in the commercial aviation industry supply chain, which is expected to grow by at least 10% annually over the next five years. The acquisition, subject to certain conditions, including U.S. government approvals, is expected to complete in the first quarter of 2018.
Kordsa is a global player in tyre, composite and construction reinforcement technologies market. FDI and TPI, founded in 1972 and 1976 respectively. They provide advanced composite materials to the aviation sector, produce specially designed products for aviation composite applications.
“This acquisition will enable Kordsa to take an important step forward in the area of advanced composite technologies, which is in our scope of future targeted industries. Kordsa will be among the major suppliers of the commercial aviation industry with this acquisition. This new step will ensure that Kordsa is a strategic supplier of key players in aerospace and civil aviation, particularly Boeing and Toray Composites Materials America Inc. This investment will contribute greatly to our innovation-oriented growth strategy at Sabancı Group while enabling our industrial companies to export technology as a part of our open innovation mindset,” said Sabancı Holding CEO Mehmet Göçmen.
Sabancı Holding Industry Group President Cenk Alper said: “Following the announcement of our market entry strategy for composite technologies in 2013, we took the first step with the Composite Technologies Center of Excellence investment in 2016. In the wake of approximately $ 100 Million investment we undertake, we will have an important presence in the commercial aviation value chain and strengthen our position in the US,”.