Sept 26 Japan's Toray Industries Inc,
maker of advanced fibers used in Boeing Co's 787
Dreamliner jet, will buy U.S.-based Zoltek Companies Inc
in a move to tap into the lower end of the growing
global market for carbon fibers.
The agreed $584 million deal will give Toray, also
developing high-specification fibers for luxury auto maker
Daimler AG, access to Zoltek products used to make
construction materials and cheaper auto parts.
Carbon fiber is strong and lighter than steel, but higher
prices have restricted its appeal to potential customers so far.
Under terms of the transaction, Toray will acquire all of
Zoltek's outstanding shares for $16.75 per share in cash. The
offer was unanimously approved by Zoltek's board, isn't subject
to any financing conditions and is expected to close late this
year or early in 2014.
Toray's offer represents a 2 percent premium to Zoltek's
closing price on Wednesday of $16.43. Zoltek's stock closed up
12.6 percent at $18.51 on Thursday after the Nikkei business
daily reported the news, giving a range of $600-$700 million for
Zoltek's products are priced about 60 percent lower than
Toray's high-performance carbon fiber, Nikkei reported
Zsolt Rumy, founder and chief executive officer of Zoltek,
will sell his own stock in the company to Toray, equal to about
18 percent of outstanding Zoltek shares.
Toray's shares rose 2.7 percent in early Tokyo trading after
the deal was announced.
JP Morgan Securities LLC is serving as financial advisor to
Zoltek and Thompson Coburn LLP is serving as its counsel in
connection with the transaction.