Kordsa acquires two US companies

Kordsa (Istanbul, Turkey), a Sabancı Holding (Istanbul, Turkey) subsidiary, announced December 6 that it has entered into a definitive purchase agreement to acquire Fabric Development Inc. (FDI, Quakertown, PA, US) and Textile Products Inc. (TPI, Anaheim, CA, US).

KORDSA (Istanbul, Turkey), a Sabancı Holding (Istanbul, Turkey) subsidiary, announced December 6 that it has entered into a definitive purchase agreement to acquire two ​​advanced composite technology companies in the US. Following its Composite Technologies Center of Excellence investment, Turkey's first industry-university collaboration investment, Kordsa plans to acquire Fabric Development Inc. (FDI, Quakertown, PA, US) and Textile Products Inc. (TPI, Anaheim, CA, US), providers of advanced composite materials to the commercial aviation industry, with an investment of approximately $100 million USD. With the acquisition, Kordsa will strengthen its position in the US, 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 acquisitions is subject to customary closing conditions, including certain US government approvals. Kordsa expects to complete the acquisition in the first quarter of 2018.

Sabancı Holding CEO Mehmet Göçmen states "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 to the commercial aviation industry with these acquisitions. This new step will ensure that Kordsa is a strategic supplier to 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 says "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. We will have an important presence in the commercial aviation value chain to 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 stated "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 four continents with its 10 plants. As Kordsa, we will continue to reinforce life and take firm steps forward.”

Kordsa is a global player in tire, composites and construction reinforcement technologies markets, and supplies its reinforcement technologies to the whole world. With its business processes, all based on R&D and innovation, Kordsa has 479 patent applications.

FDI and TPI, founded respectively in 1972 and 1976, are among the pioneering and leading companies in their sector with more than 40 years of experience. FDI and TPI, which provide advanced composite materials to the aviation sector, produce specially designed products for aviation composite applications.