Kordsa to Make Two Major U.S. Acquisitions
Kordsa has announced that in furtherance of its efforts to strengthen its already strong global leadership in reinforcement technologies, it has entered into a definitive purchase agreement to acquire two advanced composite technology companies in the United States. Following its Composite Technologies Center of Excellence investment, Turkey's first industry–university collaboration investment, Kordsa plans to acquire Fabric Development Inc. (FDI) and Textile Products Inc. (TPI), which provide advanced composite materials to the commercial aviation industry, through an investment of approximately USD100 million. With the acquisition, Kordsa will strengthen its position in the United States, as well as becoming a strong player in the commercial aviation industry supply chain, which is expected to grow by at least 10 percent annually over the next 5 years. The consummation of the acquisition is subject to customary closing conditions, including certain forms of U.S. government approval. Kordsa expects to complete the acquisition in the first quarter of 2018.
Sabancı Holding CEO Mehmet Göçmen made a statement regarding the acquisition: "In line with our ‘Sabancı of New Generation’ approach, this acquisition will enable Kordsa to take an important step forward in advanced composite technologies, which is within 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 to 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. We will continue to work in an effort to strengthen the position of both our group and our country in global competition with our commitment to be ‘Sabancı of Turkey’, as much in the future as we are today. "
Sabancı Holding Industry Group President Cenk Alper said in relation to the acquisition: "In an era of transformation in mobility services, the position and technology acquired through this purchasing decision will make an important contribution to the differentiation of our group companies. 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 the approximately USD 100 Million investment we are about to undertake, we will have an important presence in the commercial aviation value chain and strengthen our position in the U.S. We plan to pursue additional acquisition opportunities while developing new technologies in Turkey and exporting to the world, with the aim of being a global player in composite technologies."
Kordsa CEO Ali Çalışkan expressed the following regarding the acquisition of FDI and TPI: "This investment will allow Kordsa, within our composite technologies strategy, to now reinforce the wings and fuselage of an aircraft, in addition to our legacy aircraft tire reinforcement capabilities. Following the consummation of the acquisition of FDI and TPI in Philadelphia and Los Angeles, Kordsa will operate on 4 continents with 10 plants. As Kordsa, we will continue to reinforce life and take firm steps forward."