Koninklijke Ten Cate B.V. (TenCate) has reached an agreement with integrated chemicals and materials group Toray Industries Inc. on the acquisition of TenCate Advanced Composites (TCAC). The combination of TCAC and Toray brings together complementary product offerings in high performance composites serving the aerospace, space and communications and high-performance industrial markets.
There is strong strategic rationale for the transaction, with clear benefits for both companies. For Toray, the acquisition is an important step in its strategy to accelerate growth and expand its high-performance thermoplastic and thermoset composites offering, while benefitting from considerable revenue synergies.
For TCAC, the combination with Toray secures access to a source of highly-specified carbon fiber, a crucial component to supporting the needs of customers. The combination of TCAC and Toray will enhance new product development and R&D capabilities and reinforce and expand relationships with customers.
Both companies have agreed to jointly develop an integration plan to support the envisaged growth plans. Toray expects to retain key management of TCAC following completion of the transaction and respects the existing rights and benefits of the employees of the TCAC group.
Toray will acquire TCAC for an enterprise value of € 930 million. The completion of the envisaged transaction is expected in the second half of 2018 and is subject to customary approvals by regulatory authorities. The agreement is also subject to completion of the consultation process with TenCate’s works council.
TenCate Advanced Composites is a developer and producer of advanced thermoplastic- and thermoset-based composites for aerospace, space and communications, and high-performance industrial applications. Toray Industries, Inc., headquartered in Tokyo, Japan, is an integrated chemical and material group developing its businesses in 26 countries and regions worldwide.