Michelin and IDI have reached an agreement for Michelin to acquire 100% of Flex Composite Group (FCG) for an enterprise value of 700 million Euros (approx. $760 million). FCG engineers fabrics and films with applications in technical markets such as marine, supercars and electric vehicles, sports and construction.
Michelin said FCG has a wide range of polymer composite solutions, adjacent to those already developed by the company. FCG has 400 employees and primarily operates in Europe. In 2022, FCG reported €202 million (approx. $219.5 million) in revenue. Over the 2015-2022 period, it delivered an average organic growth of 11%, with 25 – 30% EBITDA margin.
The agreement would enable Michelin and FCG to be a leader in high-tech engineered fabrics and films, Michelin said. The acquisition aligns with its Michelin in Motion 2030 strategy and will mark a step forward in its strategy of growing its polymer composite activities in adjacent areas.
The transaction is slated to unlock innovation synergies in a broad range of products and applications, while further improving the environmental footprint of FCG, Michelin said. The FCG acquisition would grow Michelin’s high-tech materials revenue and accelerate the growth profile of this business. 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.
The transaction is expected to close by the end of Q3 2023, subject to customary closing adjustments and merger control clearances in relevant jurisdictions, Michelin said.