Japan’s Toray Industries the world’s largest maker of carbon-fiber composite materials, said it will buy TenCate Advanced Composites for an enterprise value of 930 million euros ($1.15 billion), as it looks to ramp up its carbon-fiber business.
The deal is in line with Toray’s aim to speed up the development of technology to match growing demand in aircraft applications of carbon fiber.
“The demand for medium- and small-sized, single-aisle aircraft is growing significantly and the development of the next-generation aircraft targeting such demand is expected to intensify,” Toray said in a statement.
TenCate manufactures thermoplastic prepreg, a material that improves efficiency of molding. Toray expects demand for the material to increase in line with demand for medium and small-sized mass-produced aircraft.
Toray has been building its carbon-fiber business, beginning with the 2013 acquisition of U.S.-based Zoltek Companies for $584 million.
