PE Deals

Andera Partners, IDI to exit investment in Flex Composite Group

Michelin has agreed to buy the composite materials company.

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  • FCG is a company that designs, manufactures, and distributes advanced composite materials
  • Andera acquired FCG in September 2015 in an LBO carried out alongside IDI
  • IDI is an investment firm based in Paris, France

Andera Partners and IDI have agreed to exit their investment in Flex Composite Group (FCG) to tyre giant Michelin for an enterprise value of €700 million.

FCG designs, manufactures and distributes advanced composite materials. The company has three brands – ORCA, Fait Plast and Angeloni. It has sales offices in Europe, the US and China and six production centres in Belgium and Italy.

FCG reported €202 million in revenue in 2022 and delivered an average organic growth of 11 percent, with 25-30 percent EBITDA margin over the 2015-2022 period.

Andera and IDI will realise an investment multiple greater than 12x on this investment, according to a release.

Andera acquired FCG in September 2015 in an LBO carried out alongside IDI.

Andera has supported FCG in its organic and external development projects, the release said.

The transaction, subject to regulatory approval, is expected to be completed in the third quarter of 2023.

Michellin’s acquisition of FCG aims to combine the technical capabilities of the FCG and Michelin teams, particularly in the fields of R&D, and capitalise on their geographical complementarities, the release said.

FCG’s addition will grow Michelin’s high-tech materials revenue by around 20 percent, the release added.

The transaction will be paid in cash and is fully financed through cash at hand.

IDI is an investment firm based in Paris, France. The firm invests in French and European companies valued between €10- €250 million and typically takes majority or significant-minority stakes in LBO and growth capital transactions.

Andera Partners is a management company specialising in private equity. The firm is based in Paris, France.

Michelin is a is a French multinational tyre manufacturing company based in Clermont-Ferrand, France.