Toray to acquire Zoltek for USD584m

Sep 30, 2013 - Japanese diversified group Toray Industries Inc (TYO:3402) said Friday it will acquire Zoltek Companies Inc (NASDAQ:ZOLT), the US maker of carbon fibres used in wind turbine blades and other devices, for some USD 584 million (EUR 431.2m).

The Japanese company is to pay USD 16.75 per Zoltek share.

In its statement, Toray noted that global demand for polyacrylonitrile (PAN)-based carbon fibres is projected to increase at an annual growth rate of more than 15%. These fibres are used as an advanced material that contributes to both energy saving via weight reduction as well as to the wider use of renewable energy, the Japanese company explained.

Separately, Missouri-based Zoltek said the transaction is awaiting stockholder and regulatory nods. Its completion is scheduled for late 2013 or early 2014.

In its first fiscal half ended March 31 Zoltek saw its revenues fall by 26.4% to USD 69.2 million. The company’s chairman and CEO Zsolt Rumy then explained that nearly the entire drop in sales was due to weak activity in the wind power sector, which has hit all industry participants. Zoltek says it is the biggest supplier of carbon fibers for wind turbines globally.

(USD 1.0 = EUR 0.739)

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