Asahi Kasei to Acquire Polypore International Inc in $3.2bln Deal

[Jacob Maslow]

Asahi Kasei, which has extensive operations in Thailand, will acquire Polypore International Inc. in a $3.2 billion deal. The company will expand operations overseas.

Asahi Kasei Corp, a Japanese fiber and chemicals manufacturer, will acquire Polypore International Inc. in a $3.2 billion deal. The company, who has extensive operations in Thailand, will be expanding its battery business and hopes to expand its overseas capacity.

The company will pay, in cash, $60.50 per share, which is about 24% more than Polypore’s 20-day average. The deal puts North Carolina-based Polypore’s enterprise value at around $3.2 billion. Polypore will also sell liabilities and assets worth $1 billion to 3M Co.

Asahi Kasei operates factories in Ayutthaya and Rayong provinces. The company plans to invest 237.7 billion baht to expand its businesses in Thailand as well as South Korea, China and the United States over the next five years.

The president of Asahi Kasei, Toshio Asano, stated that energy and the environment were two areas the company wants to focus on as it expands. New bridge loans and cash reserves will help fund the deal. The company does not plan on issuing new bonds or stocks for the deal.

At present, Asahi Kasei owns five subsidiaries in Thailand: Asahikasei Plastics Co, Asahi Kasei Intertextiles Co, Thai Asahi Kasei Spandex Co, Asahi Kasei Spunbond Co and PTT Asahi Chemical Co (a joint venture).

.

Polypore currently supplies membranes to the three largest car makers in the world as well as Panasonic and Tesla Motors.

The deal comes amidst a burst of overseas investments by Japanese businesses. Earlier in February, Japan Post Holdings Co. agreed to pay A$6.49 billion for Australia’s Toll Holdings Ltd. One day prior to the deal, Kintetsu World Express Inc. said it would buy the logistics segment of Neptune Orient Lines Ltd. for 144.2 billion yen.

Prior to the purchase, 3M Co will acquire Polypore’s $1 billion in assets in its media-separations business, which creates membranes for kidney dialysis. Asahi Kasei will acquire the cash proceeds from the deal.

-- 2015-02-24