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

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

Acquisition expands Rieke Packaging's stake in Asia

July 28, 2014 4:39 pm ET

Diversified rigid packaging components producer Rieke Packaging Systems now has a bigger footprint in Asia.    More

Image

Two medical device makers add specialty products through acquisitions

July 28, 2014 3:02 pm ET

The medical merger mania continues this summer as two more medical device manufacturers are swallowed up by bigger competitors.    More

Image

Deal combines US packaging thermoformers

July 28, 2014 12:42 pm ET

Thermoformed medical packager Nelipak Corp. is expanding its North American holdings and access to the U.S. health care market with the purchase of...    More

Image

Formosa to be compensated for Vietnam riot

July 28, 2014 1:44 pm ET

Taiwan's Formosa Plastics Group will receive $2.39 million from the Vietnamese government and insurance companies for damages suffered during the...    More

Magna hiring at two Michigan locations

July 28, 2014 11:43 am ET

Magna Interior Trim Components is adding a total of 169 jobs to two of its Michigan manufacturing facilities.    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

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

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events