Sabancı Holding CEO Mehmet Göçmen said: "Kordsa will be among the leading suppliers of commercial aviation industry with this investment"
Kordsa, a Sabancı Holding subsidiary, announced today that in furtherance of its efforts to strengthen its strong global leadership in reinforcement technologies, with it has entered into a definitive purchase agreement to acquire two advanced composite technology companies in the United States. Following its Composite Technologies Center 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 USD 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% annually over the next 5 years. The consummation of the acquisition is subject to customary closing conditions, including certain U.S. government approvals. Kordsa expects to complete the acquisition in the first quarter of 2018.
Sabancı Holding CEO Mehmet Göçmen made a statement regarding the acquisition: "In line with our “Sabancı of New Generation” approach, this 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 new step will ensure that Kordsa is a strategic supplier of key players in aerospace and civil aviation, particularly Boeing and Toray Composites Materials America Inc. This investment will contribute greatly to our innovation-oriented growth strategy at Sabancı Group while enabling our industrial companies to export technology as a part of our open innovation mindset. We will continue to work in an effort to strengthen the position of both our Group and our country in global competition with our commitment to be "Sabancı of Turkey", as much in the future as we are today. "
Sabancı Holding Industry Group President Cenk Alper said in relation to the acquisition: "In an era of transformation in mobility services, the position and technology acquired through this purchasing decision will make an important contribution to the differentiation of our Group companies. Following the announcement of our market entry strategy for composite technologies in 2013, we took the first step with the Composite Technologies Center of Excellence investment in 2016. In the wake of approximately USD 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 Çalışkan expressed the following regarding the acquisition of FDI and TPI companies: " 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. Following the consummation of the acquisition of FDI and TPI companies in Philadelphia and Los Angeles, Kordsa will operate on 4 continents with its 10 plants. As Kordsa, we will continue to reinforce life and take firm steps forward. "