Michelin Buys U.K.'s Fenner for About GBP1.2 Billion

   By Marc Navarro Gonzalez

Compagnie Generale des Etablissements Michelin (ML.FR) said Monday that it is acquiring polymer-based products manufacturer Fenner PLC (FENR.LN) in a deal valuing Fenner's entire issued and to be issued share capital at approximately 1.2 billion pounds ($1.67 billion).

Michelin said it will pay 610 pence in cash for each share in U.K.-based Fenner, which represents a 31% premium to the stock's closing price of 467 pence on Friday.

The French tire maker said Fenner shareholders will be entitled to receive and retain an interim dividend of no more than 2.1 pence for each Fenner share, which will be declared on or around April 25.

The company said it expects the acquisition to be accretive to its earnings per share in the first full year following its finalization. It said the acquisition will bring immediate annual synergies of GBP30 million.

The purchase will enable Michelin to expand its offerings to mining industry clients and broaden its engineered material division, it said.

Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com

(END) Dow Jones Newswires

March 19, 2018 14:09 ET (18:09 GMT)

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