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Blog Exposure - Hexcel Strategically Buys Aerospace & Defense Unit of Oxford Performance Materials

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LONDON, UK / ACCESSWIRE / December 11, 2017 / Active-Investors issued a free report on Hexcel Corp. (NYSE: HXL), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=HXL as the Company's latest news hit the wire. On December 08, 2017, the Company announced that it has signed a definitive agreement with Oxford Performance Materials ("OPM") to acquire its Aerospace & Defense (A&D) business. None of the concerned companies disclosed financial information or other terms of the transaction. Sign up now for our free research reports at:

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Active-Investors.com is currently working on the research report for American Outdoor Brands Corporation (NASDAQ: AOBC), which also belongs to the Industrial Goods sector as the Company Hexcel. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hexcel most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

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The acquisition will allow Hexcel to expand its technological offerings in 3D printing and to meet growing market demand for carbon fiber reinforced thermoplastic additive technology in aerospace and defense sectors. For OPM this is an excellent opportunity to "monetize its success as an early provider of qualified 3D printed OXFAB® structures". Incidentally, in 2016 and 2017 Hexcel had made equity investments of $25 million in OPM.

The Aerospace & Defense Business

As per terms of the agreement, Hexcel will acquire the entire A&D business of OPM. This includes equipment, intellectual property, and manufacturing process technology related to the A&D business operations in South Windsor, Connecticut. The acquisition does not include other business divisions of OPM. The transaction is expected to close at the end of the current month and is subject to regulatory approvals and other closing conditions.

OPM plans to utilize the funds raised from the sale to forge ahead and strengthen the Company's position as a leading biomedical OEM, industrial parts manufacturer, and developer of a range of PEKK-based materials technology.

Hexcel plans to continue being invested in OPM and will retain a part of its equity investment in OPM as well as a seat in OPM's Board. Both Companies plan to continue working on other joint projects.

Sharing his views on the acquisition, Nick Stanage, Chairman, CEO, and President of Hexcel, said:

"We are excited to add this next-generation technology to our portfolio. In combination with our unique carbon fiber capability, PEKK can provide a range of new technology solutions to our aerospace and defense customers in printed parts as well as assembled structures and broader design solutions."

Scott DeFelice, CEO of OPM, added:

"Hexcel is a global leader in advanced composites, and we are confident that their skills, reach, and scale will result in global adoption of this technology."

Why the acquisition is important?

OPM is a leader in advanced materials science and high performance additive manufacturing (HPAM™). OPM's A&D produces thermoplastic, carbon fiber reinforced 3D printed parts for commercial aerospace and space and defense applications. It was the first company to successfully apply and qualify additive manufacturing technology to the high-performance polymer PEKK for aerospace applications. The versatility and importance of the technology is such that it has the potential of replacing the traditional way of making parts using machines, casts and printed metal parts and can be adapted for use in any industrial application. The technology can produce 3D structures consistently in demanding environments. This helps companies save costs resulting from reductions in weight, cost, and lead times compared to the traditional methods. The Company's OXFAB® technology has already been adopted by several aerospace, satellite, and defense OEMs. Recently, Boeing awarded a contract to OPM for supplying 3D-printed structural production parts for the CST-100 Starliner. The technology can also be used in various industries including the semiconductor, automotive, and energy sectors.

About Hexcel Corp.

Stamford, Connecticut-based Hexcel is an advanced composites Company. It develops, manufactures, and markets lightweight, high-performance structural materials including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered core, and composite structures for use in commercial aerospace, space and defense, and industrial applications. Hexcel materials are used on virtually every commercial and military aircraft produced in the world.

About Oxford Performance Materials

Founded in 2000 by Scott DeFelice, South Windsor, Connecticut-based OPM is a leader in advanced materials science. It develops proprietary material, process, and application technologies and applies HPAM™ to produce fully functional, end-use structural parts. Its focus has been on high performance thermoplastics, especially poly-ether-ketone-ketone (PEKK). The Company's other units include OPM Biomedical and OPM Materials. OPM Biomedical unit which is a pioneer in personalized medicine. It uses its 3D printing OsteoFab® for cranial and facial implants and as an OEM 3D prints additional products on a contract manufacturing basis. OPM Biomedical is the first and only Company to receive FDA 510(k) clearance to manufacture 3D printed patient-specific polymeric implants, and has a total of four 510(k) clearances in its portfolio. The OPM Materials business unit develops proprietary OXPEKK® thermoplastic products and other materials for biomedical, aerospace, defense, and industrial applications.

Stock Performance Snapshot

December 08, 2017 - At Friday's closing bell, Hexcel's stock marginally fell 0.36%, ending the trading session at $60.50.

Volume traded for the day: 509.97 thousand shares.

Stock performance in the last three-month – up 12.14%; previous six-month period – up 17.54%; past twelve-month period – up 12.87%; and year-to-date - up 17.61%

After last Friday's close, Hexcel's market cap was at $5.42 billion.

Price to Earnings (P/E) ratio was at 21.86.

The stock has a dividend yield of 0.83%.

The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry. This sector was up 0.5% at the end of the session.

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