Acquisitions · Carbon fiber composites
Toray buys TenCate Advanced Composites, an aerospace materials maker with large US operations
- Buyer
- Toray Industries (Tokyo)
- Target
- TenCate Advanced Composites, Nijverdal, Netherlands
- Value
- €930M including net debt
- Status
- Announced on March 15, 2018; completed in July 2018.
- Date
- 2018-03-15
Toray Industries bought TenCate Advanced Composites from the Dutch company Koninklijke Ten Cate for €930 million including net debt. The Netherlands-based business makes carbon fiber composite materials and has large operations in the US, with a US corporate office in Morgan Hill, California. It was renamed Toray Advanced Composites in 2019.
Why it matters
The deal added thermoplastic composites and aerospace prepregs to Toray's carbon fiber business, together with factories and customers in the US.
A business built on US deals
Toray's presentation lists the US acquisitions that shaped the business: Bryte Technologies in 1999, Phoenixx TPC in 2007, and YLA and CCS Composites in 2008. The division had about 750 employees and expected revenue of €210 million in 2018. It makes carbon fiber reinforced thermoplastic tape and heat-resistant thermoset prepregs.
Price and approvals
The €930 million price was about ¥123 billion and about 19.8 times the business's expected 2018 EBITDA of €47 million. Toray funded it with its own money, and closing required approval from regulators including the US Committee on Foreign Investment in the United States (CFIUS).
Sources
Kakehashi M&A News home
