<article>A unit of Japanese chemical products maker <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=kaneka" target="_blank" rel="noopener noreferrer">Kaneka Corp</a> is buying out California-based <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Applied+Poleramic+Inc" target="_blank" rel="noopener noreferrer">Applied Poleramic Inc (API)</a>, a formulated advanced resin supplier in the aerospace area, for $15 million.</article>

A unit of Japanese chemical products maker <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=kaneka" target="_blank" rel="noopener noreferrer">Kaneka Corp</a> is buying out California-based <a style="color: #000080;" href="https://www.dealstreetasia.com/?s=Applied+Poleramic+Inc" target="_blank" rel="noopener noreferrer">Applied Poleramic Inc (API)</a>, a formulated advanced resin supplier in the aerospace area, for $15 million.
Kaneka earlier disclosed that its subsidiary Kaneka Americas Holding Inc (KAH) and API had entered into a stock purchase agreement on Monday (June 19) under which API will become a consolidated subsidiary of KAH.
The deal marks Kaneka&#8217;s full-fledged entry into the aerospace business.
Founded in 1949, Kaneka is a $5 billion producer of chemical products including resins, pharmaceutical intermediaries, food supplements, synthetic fibers, and fine chemicals. It has overseas subsidiaries in the US, Belgium, Germany, Singapore, Malaysia, Australia, China, Vietnam, India, Taiwan and South Korea.
API, meanwhile, was established in 1992 and is a strategic supplier of high performance composites to OEMs and their subcontractors.
Kaneka currently also supplies high performance materials such as polyimide films and resin modifiers to customers.
&#8220;Kaneka sees the acquisition of API as a way of achieving an accelerated synergistic growth through the integration of advanced core technologies from both companies,&#8221; Kaneka said in its statement.
Kaneka said there is rapid growth for high performance composites in aerospace in demanding applications such as engines, hot areas of the aircrafts, rockets and launch vehicles.
&#8220;We anticipate this sub-segment to grow more than 10 per cent annually within the next 10 years or exceed $2 billion in market value,&#8221; Kaneka added.
After the acquisition of API, Kaneka will continue to seek M&amp;A and partnership opportunities to further strengthen growth, sales and market position of high performance composites in the area of aerospace.
The acquisition is subject to approval by the Committee of Foreign Investment in the United States and satisfaction of other customary conditions.
By 2025, Kaneka aims to achieve more than $200 million in sales.
&#8220;Growth will be achieved by fully utilizing and uniting Kaneka global resources in corporate research, product research, and product development; located in institutes and research centers throughout Japan and North America,&#8221; the company said.
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A unit of Japanese chemical products maker Kaneka Corp is buying out California-based Applied Poleramic Inc (API) for $15 million.

Japan: Kaneka buys out US-based resin supplier API for $15m

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Japan: Kaneka buys out US-based resin supplier API for $15m

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