Exel acquires Diversified Structural Composites
With this acquisition Exel Composites expands into the American market – the second largest composites market globally.
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Exel Composites Plc (Mäntyharju, Finland) has signed an agreement to acquire 100% of the shares in Diversified Structural Composites Inc. (DSC, Erlanger, KY, US), from Teijin Carbon America Inc. (Rockwood, TN, US) a subsidiary of global carbon fiber manufacturer Teijin (Tokyo, Japan).
DSC has a high level of technological know-how in pultrusion related technologies and the company’s product portfolio consists of carbon fiber and glass fiber reinforced composites that are produced particularly for the wind energy industry.
“We are decisively continuing the implementation of Exel Composites’ growth strategy and the DSC acquisition is a significant step in creating a true global footprint. The American market is the second largest composites market globally in terms of value and growth, right after the Asian market. With a well-established position in Europe and a strengthened presence in Asia since the Nanjing Jianhui acquisition in 2017, the Americas was the missing pillar in our pursuit for true global presence,” says Riku Kytömäki, president and CEO of Exel Composites.
He adds, “DSC is a very good strategic fit for Exel Composites. It is focused on the same high growth segments, particularly wind energy and transportation, and opens up new channels to local markets enabling deliveries from the region to the region. The combined product portfolios of Exel Composites and DSC will enhance our attractiveness and provide cross-selling opportunities to existing and new customers.”
The acquisition of DSC will make Exel Composites the only pultrusion company with significant presence on all three major continents. This way Exel Composites aims to improve its global supply position to the markets. Rob Klawonn, president of Teijin Carbon America, says, “As DSC now becomes part of the Exel Composites Group, Exel’s enhanced global footprint and Teijin’s growth plans as an automotive composites solution provider can lead into mutual cooperation. I look forward to exploring synergies between Exel and Teijin in various areas such as the transportation sectors.”
The total estimated net debt free purchase price is approximately USD 10 million, out of which USD 6 million corresponds to DSC’s business and USD 4 million to working capital. The transaction is expected to be closed during May 2018. The acquisition will be financed with a new long term loan.
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