Michelin completes acquisition of engineered fabrics specialist Flex Composite
28 Sep 2023
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Acquisition creates “a leader in high-tech engineered fabrics and films”
Clermont-Ferrand, France – Michelin Group has completed the €700 million acquisition of Flex Composite Group from the French private-equity firm IDI, the French group announced 27 Sept.
The move is part of Michelin'as strategy to expands its non-tire business and will see revenue from high-tech materials business increase by 20%.
With the acquisition, initially announced in July, Michelin said it expected to create “a leader in high-tech engineered fabrics and films.”
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.
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.
In July, Michelin said the purchase was 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.
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