Michelin acquiring engineered fabrics specialist Flex Composite

Clermont-Ferrand, France – Michelin Group is expanding its non-tire, high-tech materials business with the €700 million acquisition of Flex Composite Group from the French private-equity firm IDI.

Based in Paris, FCG is a “European leader” in engineered fabrics and films with applications in highly technical markets such as marine, supercars & electric vehicles, sports, or construction, said Michelin 19 June.

With the acquisition, Michelin expects to create a “leader in high-tech engineered fabrics and films” and increase its revenue of high-tech materials business by 20%.

According to the Clermont-Ferrand group, FCG manufactures a wide range of polymer composite solutions, "adjacent to those already developed by the Michelin".

The company has 400 employees and primarily operates in Europe, in fast-growing markets with strong demand dynamics catering to high-end customers.

In 2022 FCG reported €202 million revenue and over the 2015-2022 period, delivered an average organic growth of 11%, with 25-30% earnings margin.

According to Michelin, the purchase is in alignment with the group’s “Michelin in Motion 2030” strategy.

It marks “a significant step forward” in the group’s strategy of growing its polymer composite activities and will give access to FCG’s “advanced customers intimacy and industrial process expertise.”

“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,” said Michelin CEO Florent Menegaux.

The transaction is expected to close by the end of the third quarter, subject to customary closing adjustments.