Michelin completes acquisition of Fenner

June 5, 2018

Fenner_conveyerFrench tyre maker Michelin has finalised its acquisition of UK-based conveyor-belt maker Fenner Plc for about US$1.7 billion recently. The deal, announced in March this year, is aimed at expanding the French tyre manufacturer’s mining equipment business and moving into non-rubber materials. The tyre maker will also gain access to Fenner’s reach into Latin America and Asia.

In May, almost all of Fenner’s shareholders approved the deal. Trading in Fenner’s shares on the London Stock Exchange’s main market were suspended from 30 May, with the company being de-listed on 1 June.

Established in 1861, Fenner is a world leader in reinforced polymer technology reporting revenues of £655 million for the year ended August 31, 2017. It provides conveyor belt solutions and reinforced polymer products for the mining and general industrial markets. It has about 4,300 employees and plants in seven countries including five in the US and four in Australia.

According to Michelin, the acquisition is expected to deliver the following strategic benefits:

  • i) Broader offer portfolio for mining customers: the acquisition will allow the Michelin Group to provide mining industry customers with a broader offering, ranging from tyres to conveyor belts with related services and solutions, and also enhance both companies’ geographic reach.
  • ii) Broadened high-tech materials expertise and innovation: driven by a strong innovation culture, Michelin and Fenner are technology leaders and have successfully developed premium product portfolios. The addition of Fenner’s polymer portfolio will help Michelin develop into the reinforced polymer markets, notably in consumer goods, industrial devices and medical segments. Michelin is further developing its expertise in advanced materials and engineered products. Fenner will be the cornerstone of this process.

“We are pleased to welcome Fenner’s employees to the group; thanks to their recognised expertise, Michelin will be able to accelerate its growth in the very dynamic high-technology materials market, which will be key to creating value in the coming years,” said Jean-Dominique Senard, CEO of Michelin.

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