Fredericks Michael & Co. acted as exclusive financial advisor to Exel Composites Oyj, a leading producer of composite products and solutions, on its acquisition of Diversified Structural Composites, Inc, producer of composite products for the energy, recreation, and industrial sectors, from Teijin Carbon America, Inc., a subsidiary of Teijin Limited, a leading producer of advanced fibers and composites, electric materials, and performance polymer products.
DSC, located in Erlanger, Kentucky, has a high level of technological know-how in primarily pultrusion related technologies, which complements Exel’s existing expertise and growth strategy. Its product portfolio consists of carbon fiber and glass fiber reinforced composites that are produced particularly for the wind energy industry.
“We are decisively continuing the implementation of Exel’s growth strategy and the DSC acquisition is a significant step in creating a true global footprint. The American market is the second largest composites market globally in terms of value and growth, right after the Asian market. With a well-established position in Europe and a strengthened presence in Asia since the Nanjing Jianhui acquisition in 2017, the Americas was the missing pillar in our pursuit for true global presence,” says Riku Kytömäki, President and CEO of Exel. “DSC is a very good strategic fit for Exel. It is focused on the same high growth segments, particularly wind energy and transportation, and opens up new channels to local markets enabling deliveries from region to region. The combined product portfolios of Exel and DSC will enhance our attractiveness and provide cross-selling opportunities to existing and new customers. We appreciate DSC’s technological advantages in several key areas. We see that the technological expertise together with other complementary strengths will improve our joint competitiveness and enable synergies, among other, via technology transfers and supply chain optimization for the ultimate benefit of our customers,” he continues.
The acquisition of DSC will make Exel the only pultrusion company with significant presence on all three major continents. This way Exel aims to improve its global supply position to the markets. Rob Klawonn, President of Teijin Carbon America, commented on the acquisition stating “As DSC now becomes part of the Exel Group, Exel’s enhanced global footprint and Teijin’s growth plans as an automotive composites solution provider can lead into mutual cooperation. I look forward to exploring synergies between Exel and Teijin in various areas such as the transportation sectors.”
FM&Co.’s advisory services to Exel included identifying, approaching and valuing DSC, and structuring and negotiating the terms and conditions of the agreement with Teijin Carbon America and Teijin.
About Exel Composites Oyj
Exel is a leading composite technology company that designs, manufactures, and markets composite products and solutions for demanding applications. Exel's share is listed on Nasdaq Helsinki Ltd. For more information, visit www.exelcomposites.com
About Diversified Structural Composites, Inc
DSC develops and produces pultruded profiles for a wide variety of end use applications. DSC provides proprietary resin systems of polyester, vinyl ester, epoxy, urethanes, and others. For more information, visit www.diversified-composites.com
About Teijin Limited
Teijin is a leading chemical, pharmaceutical, and information technology company. Its main fields of operation are high-performance fibers such as aramid, carbon fibers and composites, healthcare, films, resin ND plastic processing, polyester fibers, products converting, and IT products. Teijin’s share is listed on the Tokyo Stock Exchange. Teijin’s US subsidiary Teijin Carbon America specializes in carbon fibers and composites. For more information, visit www.teijin.com