Japan's Toray to buy TenCate to boost carbon-fibre business
(Reuters) - Japan's Toray Industries, the world's largest maker of carbon-fibre composite materials, said it will buy TenCate Advanced Composites for an enterprise value of 930 million euros (£823.8 billion), as it looks to ramp up its carbon-fibre business.
The deal is in line with Toray's aim to speed up the development of technology to match growing demand in aircraft applications of carbon fibre.
"The demand for medium- and small-sized, single-aisle aircraft is growing significantly and the development of the next-generation aircraft targeting such demand is expected to intensify," Toray said in a statement. http://bit.ly/2GrtT76
TenCate manufactures thermoplastic prepreg, a material that improves efficiency of molding. Toray expects demand for the material to increase in line with demand for medium and small-sized mass-produced aircraft.
Toray has been building its carbon-fibre business, beginning with the 2013 acquisition of U.S.-based Zoltek Companies for $584 million.
The deal, which is expected to be completed in the second half of 2018, is subject to approvals by regulators, TenCate said in a separate statement, adding that Toray expects to retain key management of TCAC following completion of deal.
(Reporting by Chris Thomas in Bengaluru; Editing by Stephen Coates)
