Michelin and IDI announced today that they have agreed on the terms by which Michelin would acquire 100% of Flex Composite Group (FCG) for an enterprise value of €700 million.
The transaction would be paid in cash and is fully financed through cash at hand, with Michelin’s financial position remaining strong post-transaction. The transaction is expected to close by the end of Q3CY23, subject to customary closing adjustments and merger control clearances in relevant jurisdictions.
FCG is a European leader in engineered fabrics and films with applications in highly technical markets such as marine, supercars and electric vehicles, sports, and construction. FCG masters a wide range of polymer composite solutions adjacent to those already developed by Michelin. With about 400 employees, it primarily operates in Europe, in fast-growing markets with strong demand dynamics catering to high-end customers. In 2022 FCG reported €202 million in revenue.
The transaction would unlock deep innovation synergies in a broad range of products and applications, while further improving the environmental footprint of FCG.
FCG acquisition would grow Michelin’s High-Tech Materials revenue by 20% and accelerate the growth profile of this business. The transaction would be EBIT margin-accretive for Michelin at Group level and for the Specialty segment, it will belong to, with positive cash generation and EPS impact.
Florent Menegaux, CEO, Michelin, said, “This operation draws on the best of both companies, in particular on our shared expertise in polymer composite solutions. We are aiming to generate synergies and to push back the frontiers of deep-tech innovation in a wide range of new products and applications. This acquisition is a milestone in our strategy to position the Group as a key player in polymer composite solutions beyond mobility.”
Emmanuel Capriglione, General Manager, FCG, said, “With Michelin, FCG will be able to increase its capacity for innovation, its actions to reduce its environmental footprint and to provide its customers with more sustainable materials.”
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