With an eye on automotive composites, Toray buys Zoltek for $584 million

Published: September 26, 2013 11:01 pm ET
Updated: September 26, 2013 11:03 pm ET

Related to this story

Topics Automotive, Materials, Mergers & Acquisitions, Materials Suppliers, Aerospace

Toray Industries Inc. is making another acquisition in the growing market for lightweight carbon fiber composites.

Toray has offered to buy Zoltek Cos. Inc., a carbon fiber manufacturer based in St. Louis, for $16.75 per share in cash, or a total of $584 million, Zoltek announced Sept. 26.

Zsolt Rumy, chairman and CEO of publicly traded Zoltek, agreed to vote his 18 percent stake in the company in favor of the deal.

“Toray provides unique opportunities to drive the continued growth of our commercial carbon fibers business well into the future," Rumy said in a news release.

When the deal is finalized in late 2013 or early 2014, Zoltek will be a wholly-owned subsidiary of Toray and operate as a separate business unit.

Both Toray and Zoltek have been helping to push the automotive sector to use more carbon fiber composites, as a means of reducing vehicle weight and improving fuel economy.

Earlier this year, Toray bought a 20 percent stake in auto carbon fiber supplier Plasan Carbon Composites Inc. of Wixom, Mich.

Last year, Zoltek signed a deal with global auto parts supplier Magna International Inc. to speed the development of low-cost carbon fiber sheet molding compounds for the auto industry.

Zoltek is a smaller player in carbon fibers, with 2012 sales of $186.3 million. The company has been pursuing a strategy to manufacture carbon fibers into commercial applications at costs competitive with other materials.

Tokyo-based Toray has also been focused on expanding the use of carbon fiber-reinforced plastics beyond their traditional base in the aerospace sector. Toray has been establishing development centers globally to help speed the use of carbon fiber in the auto market.


Comments

With an eye on automotive composites, Toray buys Zoltek for $584 million

Published: September 26, 2013 11:01 pm ET
Updated: September 26, 2013 11:03 pm ET

Post Your Comments


Back to story


More stories

Image

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Image

Investor group wants DuPont to split in two

September 18, 2014 7:37 pm ET

Investment firm Trian Fund Management LP is calling for plastics and chemicals giant DuPont Co. to split itself into two firms, one of which would...    More

Image

Smartphone work adds 52 percent to sales for China's Eva Precision

September 18, 2014 4:37 pm ET

Growth in supplying the smartphone and automotive industries helped Chinese processor Eva Precision Holdings Ltd. push injection molding sales up 52...    More

Image

Minnesota receives grant to help develop new bioplastics

September 17, 2014 4:08 pm ET

The University of Minnesota has received a $20 million grant to fund the development of new types of bioplastics.    More

Badger buys competitor Joseph Homa

September 17, 2014 4:04 pm ET

Badger Plug Co. has extended its protective plugs customer base by acquiring and closing a rival, Joseph Homa Consultants Inc. of Montreal.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events