Michelin set to complete £1.2bn takeover of UK engineering firm Fenner
Michelin is to acquire UK engineering firm Fenner after a £1.2bn deal was agreed by the two companies.
Fenner, a FTSE 250 company that specialises in reinforced polymer technology, will give the French tyre manufacturer access to the production of high-technology materials that will help its customers in the mining industry.
Michelin has also identified opportunities to achieve material cost savings, unlock processing efficiencies and leverage R&D skills, with a view to delivering faster growth and creating significant value.
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Yorkshire-based Fenner was founded in 1861 but faced an uncertain future as recently as two years ago. A decline in demand for its conveyor belts from the oil and gas industry reduced profits but the company turned itself around through a range of cost-cutting measures.
"Michelin values the skills, experience and industry knowledge of the Fenner group’s management and employees," said CEO Jean-Dominique Senard. "Mastering high-technology materials is key to creating value in the coming years.
"Fenner will enable Michelin to accelerate its growth in this area, and to strengthen its position as a key player in the recovering mining markets with a comprehensive offering."
Fenner CEO Mark Abrahams added: "We find the cultural fit and business opportunities excellent with Michelin. Both companies have innovation in their DNA and are customer solution oriented."