Michelin and IDI reached an agreement on the terms by which Michelin would acquire 100 pc of Flex Composite Group (FCG) for an enterprise value of €700 million.
FCG is a European company that manufactures engineered fabrics and films with applications in marine, supercars & electric vehicles, sports, or construction. FCG offers a wide range of polymer composite solutions, adjacent to those already developed by Michelin. The company has 400 employees andreported €202 million revenue in 2022. Over the 2015-2022 period, it delivered an organic growth of 11%, with 25 – 30% EBITDA margin.
Florent Menegaux, CEO of Michelin, declared, “We are very pleased to extend a warm welcome to the FCG teams into our Group, to create a recognized leader in high-tech technical fabrics and films. 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 of FCG, declared, “FCG has enjoyed very substantial growth in its business in the last years. This success is due to a number of key factors: recognized expertise in composite materials and films, a capacity for innovation and a strong desire to constantly improve the service provided to its customers. 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.”
The transaction would be paid in cash and is is expected to close by the end of Q3 2023, subject to customary closing adjustments and merger control clearances in relevant jurisdictions.
