Michelin in all-cash bid for Fenner

London – Compagnie Generale des Etablissements Michelin SCA (Michelin) is to buy UK-based industrial rubber and polyurethane products group Fenner in an all-cash transaction. The companies made the announcement on 19 March 2018.

Fenner’s directors are 'unanimously' recommending the offer, which values the company at about GBP 1.2 bn (EUR 1.4 bn).

The offer price of GBP 6.10/share is a 30.7% premium of on Fenner's share price at the close of business on 16 March.

The French company said the purchase will enable it to bring a 'comprehensive offering' for the mining sector. After the purchase it will combine the two groups’ tyre and conveyor belt, product and services portfolios. Its engineered material division would add a 'complementary' reinforced-polymers portfolio to its existing polymer activities.

'Michelin values the skills, experience and industry knowledge of Fenner's management and employees. Mastering high-technology materials is key to creating value,' said Jean-Dominique Senard, CEO and managing general partner of Michelin.

'The acquisition will enable Michelin to accelerate its growth in this area, and to strengthen its position in the mining markets,' Senard added.

'We find the cultural fit and business opportunities excellent. Both companies have innovation in their DNA and are customer solution oriented,' said Fenner CEO Mark Abrahams.

This story first appeared on European Rubber Journal online.