HEXCEL AND CIBA Geigy have finalised plans to combine their composites operations, to create one of the aerospace industry's largest suppliers of honeycomb, pre-impregnated and fabric composites.
The deal, which was first announced in the middle of the year (Flight International, 19-25 July), has now passed anti-trust hurdles and is expected to be completed before the end of the year after receiving the approval of shareholders.
Under the agreement, the Swiss pharmaceutical group will transfer its Ciba Composites business to Hexcel in exchange for a 49.9% stake in the enlarged company. Hexcel says that the merger should effectively double its size, taking annual sales above $600 million.
Hexcel, which emerged from Chapter 11 bankruptcy protection in February, will also pay Ciba between $60-75 million to reflect its greater debt and liabilities.
Source: Flight International
