Michelin buys U.K.'s Fenner in £1.3 billion deal
It provides conveyor belt solutions and reinforced polymer products for the mining and general industrial markets.
Fenner operates two divisions:
- Engineered Conveyor Solutions (ECS), the second largest producer of heavy conveyor belts and a global player in the heavy and complex conveyor belt solution market
- Advanced Engineered Products (AEP), a leading player in diversified polymer-engineered products. Fenner uses its expertise to identify, design and manufacture locally engineered and performance-critical polymer products for niche markets around the world.
Following an analysis and discussions with Fenner, Michelin has identified significant opportunities to achieve material cost savings, of which £30 million immediate annual synergies, unlock processing efficiencies and leverage R&D skills, with a view to delivering faster growth and creating significant value.
The boards of both companies have reached an agreement on the terms of a recommended cash acquisition by Michelin.
Each shareholder will receive 610 pence in cash for each Fenner PLC share, representing a 30.7% premium to Fenner’s share price of 467 pence at the close of business on 16 March 2018, the last business day before this announcement, valuing Fenner at approximatively £1.3 billion on an enterprise value basis.
The acquisition is to be implemented by means of a court-sanctioned scheme of arrangement. ■