Group Michelin will acquire conveyor belt and polymer goods maker Fenner PLC in a cash deal worth $1.7 billion.

Michelin has offered 610 pence in cash for each Fenner share, representing a more than 30 percent premium to the British company’s closing price of 466.6 pence on FridayMarch 23, 2018.

Fenner’s directors intend to unanimously recommend its shareholders vote in favor of the acquisition at a meeting in May, the French firm said.

“The acquisition will enable Michelin to accelerate its growth in this (high-technology materials) area, and to strengthen its position as a key player in the recovering mining markets,” Michelin CEO Jean-Dominique Senard said.

It will combine Michelin’s mining tire and Fenner’s conveyor belt businesses to provide a “comprehensive offering to mining customers”, Michelin told investors. The two firms would also combine their reinforced polymer business.

Michelin expects the deal to add to its earnings in the first full year after completion, and expects to benefit from Fenner’s access to Latin America and Asia.