Tyre maker Michelin buys East Yorkshire manufacturer Fenner in £1.2bn deal

Fenner, a manufacturer of industrial belting and other polymer-based products, is to be acquired by French tyre maker Michelin in a deal worth £1.2bn.

Michelin said that this acquisition will expand its engineered material division and “bring a comprehensive offering to mining clients.”

Tyre tyre giant is to pay 610 pence per Fenner share, giving the £1.20bn valuation.

The directors of Hessle-based Fenner believe the offer “to be fair and reasonable,” and will unanimously recommend that Fenner shareholders accept the deal.

Vanda Murray, Fenner chairman, 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.”

As a result of the transaction, Michelin will also take on Fenner’s net debt of £102m.

Jean-Dominique Senard, CEO 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.”

Mark Abrahams, CEO of Fenner, also commented: “We find the cultural fit and business opportunities excellent with Michelin. Both companies have innovation in their DNA and are customer solution oriented.”