Last week, Toray and CFRP prepreg manufacturer TenCate Advanced Composites (TCAC), a subsidiary of Koninklijke Ten Cate B.V., announced that Toray will acquire TCAC for €930 million (~$1.14 billion USD). The completion of the envisaged transaction is expected in the second half of 2018 and is subject to customary approvals by regulatory authorities. The agreement is also subject to completion of the consultation process with TenCate’s works council.
Toray is the world’s biggest carbon fiber manufacturer and has a stronghold in the aerospace market. However, the company believed that with the expected rise in the aerospace industry’s demand for thermoplastic prepreg, acquiring TenCate would position it to meet demand for thermoplastics in small- and medium-sized mass-produced aircraft. Toray also noted the growing potential of thermoplastics in automotive as an incentive to acquire TenCate.
“The acquisition is expected to generate significant synergies by combining the product lineup in which TCAC specializes with the broad range of carbon fiber as well as polymer technologies, which are Toray’s strengths,” Toray said. “Combining the two companies’ distribution channels, the company can offer a wider product lineup to the customers. Toray will respond swiftly to the expansion of the market for small-sized aircraft and expand the business further for industrial use applications including automobiles in the medium- to long-term.”
TenCate believes the deal is mutually beneficial, as it helps secure access to a source of highly-specified carbon fiber from Toray, a crucial component to supporting the needs of customers. TenCate says its connection to Toray will enhance new product development and R&D capabilities.
“We are very pleased with [the] announcement and 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. 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,” said Frank Meurs, TCAC Chief Operations Officer.