Aldila Inc. is getting out of the carbon fiber business, at least in the manufacturing sense. The company's subsidiary, Aldila Materials Technology Corp. sold its 50% interest in Carbon Fiber Technology LLC to its joint venture partner, SGL Carbon Fibers and Composites, Inc., a subsidiary of SGL Group. SGL will pay $17 million in cash, plus cash equal to one-half of CFT's net working capital as of November 30, 2007 to acquire the stake. Final adjustments to the Net Working Capital payment are expected to occur within 85 days after the closing of the sale.
As part of the sale, Aldila will pick up access to completed carbon fiber through a Supply Agreement with CFT 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. ALDA will pay CFT's costs plus an agreed mark-up for carbon fiber purchased under the Supply Agreement.
