CLERMONT-FERRAND, France — Michelin Group is looking "to become a global leader in high-tech engineered fabrics and films" with the pending purchase of Paris-based Flex Composite Group (FCG) for more than $764 million.
Michelin agreed recently to purchase FCG, which has six manufacturing subsidiaries throughout Northern Italy, from IDI, a French private equity firm.
Financing was completed with 100% available cash, Michelin said.
"Michelin's strong financial position will be maintained post-transaction," Yves Chapot, general manager and chief financial officer for Michelin, said during a June 19 investor presentation. "This is an important step to developing Michelin beyond mobility and positioning it as a key player in polymer composite solutions, in line with the Michelin in Motion 2030 strategy.
"We will leverage both companies' distinctive capabilities to unlock ... innovation synergies in a broad range of products and applications."
The acquisition, when finalized, is expected to boost overall revenue within Michelin High-Tech Materials (which represents 3% to 5% of Michelin's overall revenues) by about 20%, Chapot said.
FCG rep;orted about $220.5 million in annual revenue last year, according to Michelin, from sales of goods to customer in the marine, supercars and electric vehicles, sports and construction industries. Pre-tax (EBITDA) operating margin was in the 25% to 30% range.
Organic growth between 2015 and 2022 measured at about 11% per year for the firm.