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FEATURE
REINFORCEDplastics JANUARY/FEBRUARY 201442 0034-3617/14 ©2014 Elsevier Ltd. All rights reserved
Mergers, acquisitions and joint ventures review – 2013Reinforced Plastics reviews some of the key mergers, acquisitions and
joint ventures to take place during 2013.
First quarter 2013
Royal Ten Cate (TenCate) (NYSE Euronext:
KTC) acquired Amber Composites, a UK based
manufacturer of thermoset prepregs. The
fi nancial terms of the deal were not disclosed.
The acquisition of Amber was to help
accelerate TenCate’s thermoset composites
activities in the European market, and in
the industrial and automotive composites,
tooling materials and aerospace market.
TenCate is a leader in thermoplastic
prepregs for the aviation industry under the
Cetex® brand.
ATC Formulated Polymers Inc, a Cana-
dian manufacturer of polyester and vinyl
ester bonding and fairing compounds for
the composites industry, was acquired by
Scott Bader.
Headquartered in the UK, Scott Bader is
a supplier of unsaturated polyester resins,
gel-coats, structural adhesives and bonding
pastes. Scott Bader said this acquisition
makes it a global leader in the structural
adhesives and bonding pastes business, TenCate’s acquisition of Amber Composites will increase its activities in automotive composites. (Photo courtesy of Shutterstock.com)
RP0114_Feature_Mergers 42 20-01-14 10:25:58
FEATURE
43REINFORCEDplastics JANUARY/FEBRUARY 2014www.reinforcedplastics.com
with a full range of technologies and
the manufacturing capabilities. The ATC
acquisition fi ts with Scott Bader’s strategy
to globalise some of its key product
technologies. Adhesives is one of these.
Autodesk (NASDAQ: ADSK) acquired Fire-
hole Composites, a US based privately-held
company specialising in composites design
and analysis software. The terms of the
transaction were not disclosed.
Autodesk, headquartered in San Rafael, Cali-
fornia, USA, is a supplier of 3D design, engi-
neering and entertainment software to the
manufacturing, architecture, construction and
entertainment industries. Through the acquisi-
tion of Firehole Composites, based in Laramie,
Wyoming, it expands its expertise in the area
of lightweight, more energy effi cient materials.
Medical technology company Ottobock
acquired an 80% share in Baltic Yachts
of Finland, a builder of carbon composite
sailing boats.
As a leader in technical orthopaedics, Otto-
bock has used carbon fi bre composites in
products such as prosthetic legs for many
years. Baltic Yachts focuses on the produc-
tion of custom high performance yachts.
Baltic employs 175 people and had a
turnover of around €30 million in 2012.
Second quarter 2013
Toray Industries (TSE: 3402) acquired
Dome Carbon Magic Ltd (DCM) of Japan,
a producer of carbon fi bre reinforced plastic
(CFRP) parts for racing cars, from Dome
Co Ltd. Toray also acquired a 75% stake in
Dome Composites (Thailand) Co Ltd (DCT),
a joint venture with Saha Group. Japanese
carbon fi bre producer Toray renamed the
new subsidiaries Toray Carbon Magic Co Ltd
and Carbon Magic (Thailand) Co Ltd.
The acquisition of DCM enhanced Toray’s
carbon fi bre reinforced plastic (CFRP)
parts design expertise and also secured a
manufacturing foothold for carbon fi bre
composites in Thailand. Toray already had
CFRP manufacturing facilities in Germany:
in 2008 it took a stake in ACE Advanced
Composite Engineering GmbH, Germany;
and in 2011 it established Euro Advanced
Carbon Fiber Composites GmbH (EACC), a
joint venture with car maker Daimler.
ANSYS Inc (Nasdaq: ANSS) acquired EVEN
- Evolutionary Engineering AG, a provider
of composite analysis and optimisation
technology relying on cloud computing. The
terms of the transaction were not disclosed.
EVEN became ANSYS Switzerland, a wholly
owned subsidiary of US-headquartered
engineering simulation software expert
ANSYS Inc. The acquisition broadened
ANSYS’ knowledge and competencies in
composites simulation.
Future Pipe Industries Group acquired
Specialty Plastics Inc (FIBERBOND®) glass
fi bre reinforced pipe business from ITT
Exelis (NYSE: XLS).
There have been a number of deals in 2013 involving suppliers to the marine industry. (Photo courtesy of Shutterstock.com)
RP0114_Feature_Mergers 43 20-01-14 10:26:00
FEATURE
REINFORCEDplastics JANUARY/FEBRUARY 201444 www.reinforcedplastics.com
manufacture multiaxial and unidirectional
reinforcement fabrics at PPG’s Shelby, North
Carolina, fi breglass facility.
AGY Hong Kong Ltd agreed to sell its
100% equity interest in AGY Shanghai
Technology Co Ltd to Chongqing Poly-
comp International Corporation (CPIC),
China, for an aggregate consideration of
US$1 million.
US-headquartered AGY says this divestiture
allows it to focus on products produced
in the US, including its fi ne yarns and S-2
Glass® products.
Third quarter 2013
Cathay Investments Ltd has acquired
composites distributor Umeco Distribu-
tion Ltd (formerly GPRMS Ltd) from Cytec
Industries Inc (NYSE: CYT). The sale price
was £5.5 million cash ($8.6 million based on
a 1.56 exchange rate).
Cytec acquired Umeco in 2012 and has
since been integrating the business into its
operations. Umeco Distribution will change
its name to Cathay Composites Ltd. The
business recorded revenues of over £31
million for the year ended 31 December
2012. Cathay Composites joined Marpex
Chemicals Ltd and Wardel Chemicals Ltd in
the Cathay group and is part of UK-based
Cathay Investments’ strategy to expand into
new markets and products.
Zyvax, the US-based supplier of release
systems for the composites industry,
has been acquired by Chem-Trend. The
purchase price was not disclosed.
The acquisition gives Howell, Michigan,
USA headquartered Chem-Trend, a
manufacturer of speciality release agents
for a range of industries (including
composites, polyurethane, rubber and
thermoplastics), an expanded portfolio of
products for the fi bre reinforced plastic
(FRP) industry.
AGC Aerospace & Defense acquired Tods
Aerospace & Defence Ltd. The purchase
price was not disclosed.
Corp, a manufacturer of complex metal
components and products.
The acquisition increases US-headquartered
aerospace supplier Triumph’s global presence
and expands its composites capabilities. The
acquired business employs approximately 650
people at two manufacturing facilities located
in the UK and Thailand and is a supplier of
composite and metallic propulsion and struc-
tural composite components and assemblies.
Triumph said that the Primus Composites
business is expected to add approximately
$55 million in annual revenue. It will become
part of the Triumph Aerostructures Group.
Hexagon Composites subsidiary Hexagon
Devold acquired PPG Industries’ 50% share
of the joint venture company PPG-Devold
LLC in North Carolina, USA. Hexagon Devold
(previously Devold AMT) supplies multiaxial
reinforcements, primarily for wind turbine
blade production.
The 50/50 joint venture was established
in 2007. Hexagon Devold continues to
The FIBERBOND business, located in Baton
Rouge, Louisiana, USA, is complementary to
Dubai-based Future Pipe Industries, which
manufactures glass fi bre composite pipe for
a variety of markets, including the oil and
gas, water distribution, petrochemicals and
marine industries. FIBERBOND became part
of Future Pipe’s US division.
ITT Exelis, McLean, Virginia, USA, said that
the sale was part of its strategy to focus on
its strategic growth platforms.
US composites laboratory Delsen Testing
Laboratories of Glendale, California was
acquired by Element Materials Technology.
The acquisition strengthened Element’s posi-
tion in the aerospace composites testing
market. Element’s strategy is to become
a market leader in aerospace materials
testing services. Its plans call for Delsen to
become a ‘centre of excellence’ in aerospace
composite materials testing.
Triumph Group Inc (TGI) acquired Primus
Composites from Precision Castparts
Triumph Group Inc is a supplier to the aerospace industry. (Photo courtesy of Shutterstock.com)
RP0114_Feature_Mergers 44 20-01-14 10:26:02
FEATURE
45REINFORCEDplastics JANUARY/FEBRUARY 2014www.reinforcedplastics.com
cooperation agreement to develop and
market high-performance carbon fi bre yarns.
Gruschwitz will market stretch-broken
carbon fi bre yarns developed by SGL Group
and tailor them for specifi c customer appli-
cations. The companies said that the two
partners will each contribute their own
specifi c know-how. SGL Group, as a mate-
rials specialist, has expertise in raw materials
to carbon fi bres and carbon fi bre compos-
ites. Gruschwitz is a leading supplier of
high-performance yarns, and concentrates
on marketing speciality yarns, twisted indus-
trial yarns and sewing threads in the auto-
motive, healthcare, and other industries.
Scott Bader has initiated two new joint
ventures in Brazil and Saudi Arabia as part of
its long-term global business growth strategy.
Working with Andercol S.A., a business unit
of Grupo Mundial and a long-term partner
in South and Central America, Scott Bader
has created a 50:50 joint venture company
in Brazil, named ‘NovaScott Especialidades
Quimicas Limitada’. This new company will
produce and sell a wide range of Scott
Fourth quarter 2013
US thermoplastics manufacturer RheTech
Inc. has formed a strategic alliance with Eco
Bio Plastics Midland, Inc. (EBPM) to use
EBPM’s patent-protected technology that
incorporates ground paper as a reinforce-
ment in plastics.
RheTech added that this results in an
environmentally friendly bio-plastic that
reduces the use of fossil-based materials
and carbon dioxide (CO2) emissions. It also
helps reduce component part weight,
while providing excellent durability and
performance for a variety of applications
ranging from automotive to consumer
goods.
The new bio-composite technology, devel-
oped by Eco Research Institute Ltd. (ERI)
of Japan, the parent company of EBPM,
involves dry-grinding paper and pulp into
micro-sized powder. The powder can then
be used as a reinforcement in polypro-
pylene and other plastics.
SGL Group - The Carbon Company and
the Gruschwitz Group have signed a
US-headquartered private equity fi rms Acorn
Growth Companies and The Edgewater
Funds partnered to acquire UK-based Tods,
which will be integrated into AGC Compos-
ites & Aerostructures, part of AGC Aerospace
& Defense.
AGC Aerospace & Defense, the unifying
brand of Acorn Growth Companies, supplies
technologies, systems and services for
commercial and military programmes. Tods
specialises in the engineering, design and
manufacture of composite products for
aerospace and naval acoustic structures,
including sonar bow domes, radomes, and
aerospace interior assemblies. The acquisi-
tion of Tods is a further step in Acorn
Growth Companies’ global growth strategy.
Tods is the fi fth business to be consolidated
into AGC Composites & Aerostructures.
Toray Industries Inc (TSE: 3402) acquired
a 20% interest in Plasan Carbon Compos-
ites (PCC), a manufacturer of carbon fi bre
composite parts for the automotive industry.
The purchase price was not disclosed.
Carbon fi bre manufacturer Toray has iden-
tifi ed the expansion of its carbon fi bre
composite business in the automotive
market as one of its top priorities and has
been making several acquisitions/collabora-
tions in this area.
PCC has facilities in Vermont and Mich-
igan, USA. It has produced parts for cars
including the Corvette Z06 and the Viper
ACR. It has developed a proprietary “high
speed pressure press process” for carbon
fi bre reinforced plastic (CFRP) Class A body
panels.
Toray Industries Inc (TSE: 3402)
announced plans to acquire Zoltek
Industries Inc (Nasdaq: ZOLT), a US
headquartered manufacturer of carbon
fi bre, for US$584 million.
Japanese group Toray is the world’s largest
manufacturer of carbon fi bre. The acquisi-
tion of Zoltek will expand its Carbon Fiber
Composite Materials business into the
large tow carbon fi bre sector and the wind
energy and automotive markets.Some deals this year have involved suppliers of carbon fibre to the wind energy market. (Photo courtesy of Shutterstock.com)
RP0114_Feature_Mergers 45 20-01-14 10:26:03
FEATURE
REINFORCEDplastics JANUARY/FEBRUARY 201446 www.reinforcedplastics.com
Bader’s speciality products, and especially
its extensive range of gelcoat products, sold
under its Crystic® brand. In addition, Scott
Bader will supply its ranges of Crestomer®
and Crestabond® structural adhesive prod-
ucts and Crestapol® high performance
The positive momentum in second half 2013
is to carry into 2014, according to Mark Humphries, partner, Catalyst Corporate Finance, as he reviews M&A in the compos-
ites industry in the second half of 2013 for
Reinforced Plastics.
Momentum in M&A continued in the
second half (H2) of 2013 with 20 reported
deals, compared to 15 in the fi rst half of the
year. Although the overall volume of deals
has not quite matched 2012’s record level,
the drivers underpinning M&A – expansion
into strategically important markets, strength-
ening platforms and integrating supply
chains – remain fi rmly in place.
Complementary markets and products underpin strategic dealsOne of the largest deals in H2, and for the
year, was Toray Industries’ £364 million acqui-
sition of Zoltek. Acquiring Zoltek represented
a strategic goal to access a specifi c market
– Toray’s product set has been focused on
regular tow carbon fi bre typically used in
aircraft applications and this deal provides
it with access to the large tow carbon fi bre
used in wind power and automotive applica-
tions. These are sectors where signifi cant
increases in demand are forecast and others
are making signifi cant commitments, as
demonstrated by Mitsubishi Heavy Industries
announcement in the summer that it has
established an off shore wind turbine joint
venture with Vestas Wind Systems – Zoltek is
a major supplier to Vestas.
Similarly, Fives’ acquisition of MAG
Americas, a global supplier of high perform-
ance machining solutions and composite
processing such as high-precision machine
tools, provides it with access and scale to
high- growth sectors including aerospace
and oil and gas.
Zoltek was not Toray’s only deal during
H2. Toray is forecasting sales of carbon fi bre
Comment
Mergers and acquisitions in the composites industry.
to industrial applications like automotive to be
double its sales to aerospace applications by
2020 and in July it acquired a stake in Plasmon
Carbon Composites (PCC). Toray is a supplier to
PCC, which is the sole US tier 1 supplier of CFRP-
based exterior body panels for performance and
luxury cars of US automobile manufacturers. For
Toray, this investment enables it to gain more
control over its US supply chain, maintain a
distribution channel to US manufacturers and
create a manufacturing and development base
for CFRP auto parts in North America.
Autodesk has continued to strengthen its
presence in the manufacturing sector, following
up its March 2013 acquisition of composite
software specialist Firehole Technologies with
the £173 million purchase of CADCAM software
leader Delcam Plc. Delcam’s software is used
in a wide range of applications across the
automotive, aerospace, plastics and composites
industries and the deal highlights the growing
importance of technology in manufacturing
to support more effi cient product design and
consistent output.
Private equity continues to build platformsAGC Aerospace and Defense has acquired its
fi fth business, partnering with The Edgewater
Funds to acquire Tods Aerospace & Defence
to strengthen its presence in Europe, Asia and
the Middle East. Cathay Investments acquired
composites distributor Umeco Distribution
from Cytec. The business has long-term supply
relationships with a number of composites
manufacturers including Jushi Group and Cytec.
Attractive M&A environment in 2014Looking ahead, M&A market conditions remain
very favourable. Large strategic acquirers across
the supply chain will remain acquisitive as they
look to secure capacity in existing and comple-
mentary markets, enhance their technological
expertise and support their growth objectives
as the use of composites across multiple end
markets ramps up. This is presenting small
to mid-sized manufacturers with attractive
opportunities to scale and broaden their end
markets.
resins, which will be sold by NovaScott
alongside the Crystic gelcoats.
In partnership with S & A Abahsain, a
privately-owned chemical company in Saudi
Arabia, Scott Bader has created a 50:50 joint
venture company named ‘Abahsain Scott
Bader LLC’, to sell a wide range of polyester
resins and other Scott Bader speciality prod-
ucts, including gelcoats and vinyl esters, in
the Saudi Arabian market and other regional
markets across the GCC region. ■
RP0114_Feature_Mergers 46 20-01-14 10:26:05