Kordsa, a leading reinforcement technologies company and a subsidiary of Turkish conglomerate Sabancı Holding, has decided to purchase a 95.83 percent stake in the California-based Axiom Materials Acquisition LLC, it said in a statement Monday.
The American company provides advanced composite materials for the aerospace industry as well as the next generation transportation vehicles. It is owned by Axiom Materials Holdings LLC.
The value of the transaction, carried out by the company's U.S. affiliate Kordsa Inc., stands at $174.83 million excluding closing adjustments "after all required legal permits in Turkey and the U.S. are granted," Kordsa said in its statement on the Public Disclosure Platform (KAP) Monday evening.
"The final purchasing price will be determined in the closing process after approvals of the Bureau of Competition and the Committee on Foreign Investment in the U.S. (CFIUS)," it said.
Kordsa is currently a supplier and technical partner of Axiom Materials, in the field of textile reinforcement technologies. Once the transaction is complete, Axiom Materials will continue to operate under its existing trade name and business partnerships.
Founder president of Axiom Materials Johnny Lincoln said, "Merging business interests with Kordsa is an ideal strategic move for our company, as it will combine Axiom's innovation in advanced composite technologies with Kordsa's scientific expertise and operational excellence."
He said that it would help them further scale the business and push the boundaries of advanced composite material technologies. Kordsa CEO Ali Çalışkan said, "The acquisition of Axiom Materials is an important next step in our growth strategy as we pursue advanced composite technologies for aerospace as well as next-generation industrial and transportation applications."
Over the last couple of years, Kordsa has been taking steps toward its double growth strategy by consolidating its market share in tire reinforcement technologies with its composite technologies. In July of last year, Kordsa invested approximately $100 million to acquire American Fabric Development Inc. (FDI) and Textile Products Inc. (TDI), two strategic suppliers of the world's leading aerospace and civil aviation brands, like Boeing and Toray Composites Materials America Inc.