USA : Aldila JV member to buy Carbon Fiber Technology

Aldila Inc announced that its subsidiary, Aldila Materials Technology Corp. (“AMTC”) had entered into an agreement for the sale of AMTC’s 50% interest in Carbon Fiber Technology LLC (“CFT”) with SGL Carbon Fibers and Composites Inc (“SGL”), a subsidiary of SGL Group – The Carbon Company. SGL currently owns the other 50% of CFT. The sale is scheduled to close on November 30, 2007.

SGL will pay AMTC $17 million in cash, plus cash equal to one-half of CFT’s Net Working Capital as of November 30, 2007. Final adjustments to the Net Working Capital payment are expected to occur within 85 days after the closing of the sale.

Aldila’s subsidiary, Aldila Golf Corp. (“AGC”) and CFT concurrently entered into a Supply Agreement to allow AGC to continue to purchase up to 900,000 pounds of carbon fiber during the first year, and up to approximately 1,000,000 pounds of carbon fiber in subsequent years.

The Supply Agreement will run for 5 years, subject to certain early termination provisions. AGC will pay CFT’s costs plus an agreed mark-up for carbon fiber purchased under the Supply Agreement.

Peter R. Mathewson, Aldila’s Chief Executive Officer, said, “We are very pleased with this arrangement, which will allow us to monetize our investment in CFT recognizing a significant gain on the sale and at the same time provide us with continued access to carbon fiber from CFT for the next five years.

This sale allows us to focus on our two core businesses of graphite golf shafts and prepreg composite materials.”
Source: fibre2fashion.com