Hey! We finally see a press release- Purchase of Certain Clark-Schwebel Assets Completed
STAMFORD, Conn.--(BUSINESS WIRE)--Sept. 16, 1998-- Hexcel Corporation (NYSE/PCX: HXL) announced today that it had completed its previously announced acquisition of certain assets of Clark-Schwebel, Inc. Hexcel said the acquisition positions the company as a global leader in supplying high-quality materials for the electronics and telecommunications industries.
Assets acquired to date include Clark-Schwebel's wholly owned US operations as well as Clark-Schwebel's interests in two joint ventures, Asahi-Schwebel Co., Ltd. and Clark-Schwebel Tech-Fab. Hexcel's acquisition of Clark-Schwebel's interest in CS-Interglas AG is pending European regulatory approval and is expected to close in the fourth quarter.
The purchase price for the entire transaction, including the wholly owned US operations and the three joint venture interests, is $463 million. In addition, Hexcel will lease $50 million of property, plant and equipment under a long term lease with purchase options.
Clark-Schwebel is the world's sales and technology leader in the production of high-quality glass fiber fabrics used to make printed circuit boards for electronics and telecommunications equipment such as computers, cellular telephones, televisions and automotive components. Clark-Schwebel fabrics are also used in reinforced composite materials, ballistic protection and other applications that demand the strength, chemical resistance and other high-performance capabilities of glass and other specialty fibers.
``This is an important strategic transaction for Hexcel,'' said John J. Lee, the company's chairman and chief executive officer. ``It establishes Hexcel as a leading global supplier to the electronics and telecommunications industries, both of which have strong long term growth potential. This will be an excellent complement to Hexcel's existing leadership positions in commercial aerospace, space and defense. On a pro forma basis, the acquisition increases our non-commercial-aerospace sales to about 50% of total sales, from about 35% currently.''
Mr. Lee added, ``The acquisition also globalizes our fabrics operations, which now will have worldwide leadership positions in glass, carbon and Kevlar reinforcement fabrics. Now that the transaction is closed, our objective is to build a single, global business that combines the best of Hexcel's and Clark-Schwebel's capabilities.''
Clark-Schwebel has about 1,300 full-time employees and operates manufacturing facilities in Anderson, SC; Washington, GA; Cleveland, GA; and Statesville, NC. In 1997 Clark-Schwebel's wholly owned operations in the United States had $240 million of sales and $49 million of EBITDA. In addition, Clark-Schwebel's Asahi-Schwebel and CS Tech-Fab joint ventures had about $173 million in combined 1997 sales. The company's CS-Interglas joint venture had about $155 million in sales in 1997.
With its existing operations in Lyon, France and Sequin, TX, Hexcel is the world's largest producer of carbon fiber reinforcement fabrics. In addition, Hexcel has attractive niche positions in fiberglass and other specialty fabrics. These products are used for a range of aerospace, electronic, decorative and other applications.
The acquisition was funded by borrowings under a new $910 million global credit facility arranged by Credit Suisse First Boston. The new credit facility was also used to refinance Hexcel's existing bank debt. Donaldson, Lufkin & Jenrette served as Hexcel's financial advisor for the transaction.
Hexcel Corporation is the world's leading advanced structural materials company. It manufactures lightweight, high performance carbon fibers, structural fabrics, composite materials and engineered products for use in commercial aerospace, space and defense, recreation and general industrial applications. Hexcel's 1997 revenues were