Michelin swoops for listed manufacturer in £1.2bn deal
Listed manufacturer Fenner, based in Hessle, is set to be acquired by Michelin in a £1.2bn deal.
Fenner announced that the firm had reached agreement on the terms of a recommended cash acquisition for the share capital of Fenner to be acquired by Michelin.
Vanda Murray, chair of Fenner, said: “Fenner has successfully established itself as a world leader in reinforced polymer technology and the Board remains confident that Fenner’s existing strategy would deliver significant value for Fenner Shareholders as an independent company.
“However, we also believe that the terms of the Acquisition acknowledge the quality of Fenner’s businesses and the strength of its future prospects, and as such the Board intends to recommend unanimously the Acquisition to Fenner Shareholders.”
Mark Abrahams, chief executive officer of Fenner, said: “We find the cultural fit and business opportunities excellent with Michelin. Both companies have innovation in their DNA and are customer solution oriented.”
The firm said that the acquisition was consistent with the ambitions set out in Michelin’s 2020 strategic plan, strengthening Michelin’s engineering capabilities and enhancing customer and solution focus.
The announcement said that the deal would give a comprehensive offering to mining clients through the combination of Michelin’s and Fenner’s respective tire and conveyor belt, product and services offering, would take advantage of complementary footprints and create synergies and growth opportunities.
It would also expand Michelin’s engineered material division with a complementary high-tech polymer portfolio by combining mutual expertise in reinforced polymers and creating a platform to further expand its polymer activities.
Jean-Dominique Senard, chief executive officer and managing general partner of Michelin, added: “Michelin values the skills, experience and industry knowledge of Fenner’s management and employees. Mastering high-technology materials is key to creating value in the coming years. The acquisition 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.”
The directors of Fenner consider the terms of the to be fair and reasonable and are recommending unanimously that Fenner Shareholders vote in favour.
Fenner were advised by Rothschild and Pinsent Masons.
