Koninklijke Ten Cate B.V. (TenCate) announced March 14, 2018, it had reached an agreement with integrated chemicals and materials group Toray Industries Inc. on the acquisition of TenCate Advanced Composites (TCAC). TenCate said Toray is committed to further accelerate the growth of TCAC in the coming years, fully supporting TCAC management’s strategy and investment growth plans.
“We . . . consider Toray a strong partner for us in terms of cultural fit, complementary product and market segment offerings, focus on R&D, and geographical reach,” said Frank Meurs, TCAC chief operations officer. “We have a long history of successful cooperation with Toray and are convinced that we can strengthen each other. We are looking forward to continuing to grow TCAC together with Toray.”
TenCate said both companies have agreed to jointly develop an integration plan to support the envisaged growth plans. Toray expects to retain key management of TCAC following completion of the transaction and respects the existing rights and benefits of the employees of the TCAC group.
“We are delighted that we have found such a strong strategic partner for TCAC in Toray,” said Jan Albers, CEO of TenCate. “The aerospace industry is entering a new growth phase, which requires large investments for continued sustainable growth in this dynamic market. With Toray we have found the right partner to expand TCAC’s leading role in advanced composites.”
TenCate said Toray will acquire TCAC for an enterprise value of €930 million ($1.15 billion). The companies expect the completion of the acquisition in the second half of 2018, which is subject to approvals by regulatory authorities. The agreement is also subject to completion of the consultation process with TenCate’s works council.
J.P. Morgan Securities PLC acted as exclusive financial advisor and Clifford Chance LLP acted as legal advisor to TenCate. Nomura Securities Co. Ltd. acted as financial advisor to Toray.