Exel Composites Plc, has signed an agreement to acquire 100 per cent of the shares in Diversified Structural Composites, Inc. (DSC), a composites company, from Teijin Carbon America, Inc. a subsidiary of Teijin, a global carbon fibre manufacturer. Exel Composites designs, manufactures, and markets composite products and solutions for demanding applications.
DSC has one manufacturing facility using mainly pultrusion technology located in Erlanger, Kentucky. DSC has a high level of technological know-how in pultrusion related technologies, which complements well Exel Composites’ existing expertise and growth strategy. DSC’s product portfolio consists of carbon fibre and glass fibre reinforced composites that are produced particularly for the wind energy industry.Exel Composites Plc, has signed an agreement to acquire 100 per cent of the shares in Diversified Structural Composites, Inc. (DSC), a composites company, from Teijin Carbon America, Inc. a subsidiary of Teijin, a global carbon fibre manufacturer. Exel Composites designs, manufactures, and markets composite products and solutions for demanding applications.#
DSC has about 90 employees and for the fiscal year 2017, ended in March 2018, revenue amounted to $ 19 million and operating loss close to $ 1 million. Restructuring initiatives since 2015 have progressively improved DSC’s profitability and breakeven profitability is expected to be reached in 2019.
The acquisition of DSC will make Exel Composites the only pultrusion company with significant presence on all three major continents. This way Exel Composites aims to improve its global supply position to the markets.
The total estimated net debt free purchase price is approximately $ 10 million, out of which $ 6 million corresponds to DSC’s business and $ 4 million to working capital. The transaction is expected to be closed during May 2018. The acquisition will be financed with a new long term loan.
Riku Kytömäki, president and CEO of Exel Composites said, “We are decisively continuing the implementation of Exel Composites’ growth strategy and the DSC acquisition is a significant step in creating a true global footprint. The combined product portfolios of Exel Composites and DSC will enhance our attractiveness and provide cross-selling opportunities to existing and new customers. We see that the technological expertise together with other complementary strengths will improve our joint competitiveness and enable synergies, among other, via technology transfers and supply chain optimisation for the ultimate benefit of our customers.” (GK)
Fibre2Fashion News Desk – India
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