Compagnie Générale Des Etablissements Michelin has acquired Flex Composite Group from the French private-equity firm IDI for €700m including debt.
The French auto supplier said that buying the Paris-based engineer of fabrics and films will increase its high-tech materials business revenue by around 20%. FCG reported €202m in revenue for 2022, Michelin said. The company had an average organic growth rate of 11% with an earnings before interest, taxes, depreciation and amortization margin of between 25% and 30% over the 2015-22 period, Michelin said.
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The deal will enhance Michelin’s role in the polymer composite market and allow it to expand in areas beyond mobility, the company said.
Michelin said it expects the deal, which was financed with available cash, to gradually increase its earnings before interest and taxes margin. The transaction is expected to close in the third quarter, Michelin said.
Source: Private Equity News
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