Kordsa Prepares for Two Major Acquisitions in the United States

Sabancı Holding CEO Mehmet Göçmen: "With this investment, Kordsa will become one of the major suppliers to the commercial aviation sector" Kordsa, a subsidiary of Sabancı Holding, will cement its strong global leadership in reinforcement technologies through two major acquisitions in the field of composite technologies. Following the investment in the Composite Technologies Center of Excellence, Turkey's first industry-university collaboration model launched in 2016, Kordsa has decided to acquire Fabric Development Inc. (FDI) and Textile Products Inc. (TPI), companies that supply advanced composite materials to the commercial aviation sector, with an investment of approximately USD 100 million. Through these acquisitions, Kordsa aims to incorporate leading firms in the composite technologies market, which is expected to grow at an average rate exceeding 10 percent annually over the next five years in the aviation sector, thereby strengthening its position in the Americas and becoming a strong player in the commercial aviation supply chain. The closing of the acquisition is expected to be completed in the first quarter of 2018, subject to approvals from competition law authorities and the foreign investment committee in the United States over the coming months. In a statement regarding the acquisition, Sabancı Holding CEO Mehmet Göçmen said: "In line with our 'New Generation Sabancı' approach, our company Kordsa is taking an important step in advanced composite technologies, which is among the industries of the future. When this acquisition is completed, Kordsa will have become one of the major suppliers to the commercial aviation sector. This new step will enable Kordsa to be a strategic supplier to important players in the aerospace and civil aviation sectors, particularly Boeing and TorayComposites Materials America Inc.

This investment, which we believe will make a significant contribution to our innovation-driven growth strategy as Sabancı Group, will be an important opportunity to access technology and bring this technology to our country, and will position our industrial companies to export technology within the framework of our open innovation approach.

As we have done so far, we will continue to work to strengthen the global competitive position of both our Group and our country, with the responsibility of being 'Turkey's Sabancı'." In a statement regarding the acquisition, Sabancı Holding Industrial Group Chairman Cenk Alper said: "In this period when transportation is undergoing a major transformation, the position and technologies we will gain through this acquisition will make an important contribution to the differentiation of our Group companies. We took the first step of our composite technologies entry strategy, announced in 2013, with the Composite Technologies Center of Excellence in 2016. With this second step, we aim to secure an important position in the aviation value chain. Through this investment, planned with a budget of approximately USD 100 million, we will incorporate leading firms in the composite technologies market, thereby strengthening our position in the Americas and becoming a strong player in the commercial aviation supply chain. With the goal of becoming a global player in composite technologies, we will continue to develop new technologies in Turkey and export them to the world, while also monitoring new acquisition opportunities," he said. Kordsa CEO Ali Çalışkan made the following remarks regarding the acquisition of FDI and TPI: "With this investment, realized through our buy and build strategy in composite technologies, we will now reinforce not only the tires but also the wings and fuselages of aircraft. Following the completion of the acquisition process, with FDI and TPI joining our organization and based in Philadelphia and Los Angeles, Kordsa will continue its operations across four continents in 10 facilities. As Kordsa, we will continue to strengthen life with all our might and grow with confident steps."