Michelin acquiring Flex Composite Group

Michelin is to acquire Flex Composite Group (FCG) from private equity investor IDI for an enterprise value of 700 million euros, a transaction it expects will increase the revenue of its High-Tech Materials businesses by approximately 20 per cent and create a “leader in high-tech engineered fabrics and films.” Michelin views growth here as an “important step” in developing “beyond mobility” and positioning the company as a ”key player in polymer composite solutions” in line with its Michelin in Motion 2030 strategy.

FCG employs around 400 people and is active in a range of markets, such as marine, supercars & electric vehicles, sports, and construction. Achieving average organic growth of 11 per cent and a 25 to 30 per cent EBITDA margin over the period from 2015 to 2022, company revenue for 2022 amounted to 202 million euros.

Pushing back the frontiers of deep-tech innovation

“We are very pleased to extend a warm welcome to the FCG teams into our Group, to create a recognised leader in high-tech technical fabrics and films,” says Florent Menegaux, chief executive officer of Michelin. “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.”

“FCG has enjoyed very substantial growth in its business in the last years,” adds Emmanuel Capriglione, general manager of FCG. “This success is due to a number of key factors: recognised 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.”

Michelin will fully finance the acquisition through cash at hand, with its financial position “remaining strong post transaction.” The company expects the transaction to close by the end of Q3 2023, subject to customary closing adjustments and merger control clearances in relevant jurisdictions.