Kordsa enters agreement to acquire two composite firms
Sabancı Holding CEO Mehmet Göçmen
Kordsa, a Sabanci Holding subsidiary and a leader in tire, composite, and construction reinforcement technologies market, has announced that in view of its efforts to strengthen its global leadership in reinforcement technologies, it has entered into a definitive purchase agreement to acquire two advanced composite technology firms in the United States.
Following its Composite Technologies Centre 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, with an investment of approximately US $100 million.
With the acquisition, Kordsa will strengthen its position in the United States, as well as become a strong player in the commercial aviation industry supply chain, which is expected to grow by at least 10 per cent annually over the next five years. The consummation of the acquisition is subject to customary closing conditions, including certain US government approvals. Kordsa expects to complete the acquisition in the first quarter of 2018.
Sabanci Holding CEO Mehmet Göçmen said, “In line with our “Sabanci of New Generation” approach, the acquisition will enable Kordsa to take an important step forward in the area of advanced composite technologies, which is in our scope of future targeted industries. Kordsa will be among the major suppliers of commercial aviation industry with this acquisition. This investment will contribute greatly to our innovation-oriented growth strategy at Sabanci Group while enabling our industrial companies to export technology as a part of our open innovation mindset.”
Sabanci Holding Industry Group president Cenk Alper said, “Following the announcement of our market entry strategy for composite technologies in 2013, we took the first step with the Composite Technologies Centre of Excellence investment in 2016. In the wake of approximately US $100 million investment we undertake, we will have an important presence in the commercial aviation value chain and strengthen our position in the US. 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 Çaliskan said, “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.” (GK)
Fibre2Fashion News Desk – India