(News Bulletin 247) – IDI and Andera Partners have announced the sale of Flex Composite Group (FCG), a high-tech materials company, to Michelin for an enterprise value of 700 million euros.
Following this announcement, the analyst confirms his advice to keep with a price target of 32 E.
‘The transaction should increase earnings per share (and cash) in the first year. This acquisition should strengthen Michelin’s growth profile but the price is high (the deal would be valued at around 2.9 times 2024e sales)’ says Stifel.
‘It must be seen as the first of a series of acquisitions since the financial director recently declared that Michelin could devote up to 10 billion euros to mergers and acquisitions’ adds the analysis office.
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
