Michelin (MGDDY) announced that it intends to acquire Fenner (FNERF).
Fenner provides conveyor belt solutions and reinforced polymer products for the mining and general industrial markets. It had 2017 annual revenues of GBP 655M. 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 share, representing a 30.7% premium to Fenner’s share price of 467p at the close of business on March 16, valuing Fenner at approximately GBP 1.3B on an enterprise value basis.
Michelin says it has identified “significant opportunities to achieve material cost savings, of which GBP 30 million immediate annual synergies, unlock processing efficiencies and leverage R&D skills, with a view to
