The acquisition of Multistrada provides Michelin with access to a plant capable of producing:
In 2017, Multistrada generated US$281 million in net sales, showcasing its strong market presence and operational capability. Michelin’s investment in Multistrada is expected to transform its product lineup, with a gradual shift from Tier 3 passenger car tyres to Michelin’s Tier 2 brands, supporting increased production of Tier 1 tyres at other facilities across Asia.
Strengthening Sales Channels in Indonesia
In addition to the manufacturing deal, Michelin will acquire a 20% stake in PT Penta Artha Impressi, a tyre retailer. This partnership, in collaboration with Indomobil and private investors, will bolster Michelin’s marketing and sales capabilities in the Indonesian market, which is predominantly locally produced.
CEO Statements Reflect Optimism
Jean-Dominique Senard, CEO of Michelin, stated:
“The acquisition of Multistrada represents an excellent opportunity for Michelin to expand its operations in Indonesia, the most populous country in Southeast Asia, and immediately gain competitive, good-quality production capacity without having to create any new manufacturing facilities.”
Pieter Tanuri, CEO of Multistrada, shared his perspective:
“We are very proud of what we achieved with Multistrada and we are confident Michelin is the ideal partner to take Multistrada forward into a new era of growth and success for the benefit of all stakeholders and employees.”
Strategic Implications
This acquisition aligns with Michelin’s strategy to grow its Tier 2 tyre production for markets in Europe, North America, and Asia. By leveraging Multistrada’s established manufacturing base and local market knowledge, Michelin can optimise its production network and strengthen its presence in Southeast Asia.
Public Shareholder Offer
Under Indonesian regulations, Michelin will launch a public offer for the remaining shares of Multistrada at the same price per share offered to the 80% shareholder group. This ensures compliance and provides an opportunity for other shareholders to participate in the deal.
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