Alcan announced yesterday that it has entered into agreements to acquire Baltek Corporation, the world’s leading supplier of balsa-based structural core materials, for approximately US$35 million.
The transaction, which is subject to approval by Baltek’s shareholders, has received the approval of Baltek’s board of directors and the support of its major shareholders.
According to Alcan, the combination of Alcan Composites’ product range with materials from Baltek will significantly enhance Alcan Composites’ offering to the growing composite material market.
“This acquisition will grow one of the profitable segments of our engineered products business, the composites business unit,” said Travis Engen, President & CEO of Alcan Inc. “Baltek is the world leader in balsa-based composite materials, which complements our existing structural foam product range. Furthermore, Baltek has also been Alcan Composites’ North American distributor of structural foam for eight years.”
Structural core materials are used in composite sandwich construction, an engineering concept that is said to offer high performance and lightweight design properties. Composite sandwich construction is widely used in the marine, mass transportation, wind-power generation and aerospace markets.
Under the agreements, Alcan will acquire Baltek on the basis of US$15.17 per share. Completion of the transaction is subject to certain conditions, although no clearances from anti-trust or competition authorities are required. Alcan expects the transaction to be completed in the second quarter of 2003.