Michelin has acquired Canadian off-the-road tire and track (OTR) maker Camso, with plans to establish a new, industry-leading combined OTR division.
After clearing regulatory hurdles, Michelin will pay $1.45 billion for Camso, which was founded in 1982 and reported sales of $1 billion in 2017.
As part of the deal, Michelin will combine its OTR division with Camso, and is moving all OTR decision making to Camso’s headquarters of Magog, Quebec, Canada. All OTR management teams and the top executive will work out of the Magog office, Michelin says.
Michelin says the acquisition will create the “world’s number one OTR market player,” and “will represent more than double the net sales of Camso, supported by 26 plants and approximately 12,000 employees.”
Of particular note, Michelin says it expects the cooperation between the companies’ researchers inside the new combined OTR division to further innovation in tracks and airless tires.
Michelin says Camso’s product and service offerings are complimentary to its own and notes that Camso is “a market leader” in rubber tracks for farm equipment and snowmobiles, and in solid and bias tires for material handling equipment. The company is also a top-three player in the construction market in both track and tires for small heavy equipment.
On the construction side, Michelin says Camso’s product offering will reinforce its own, while on the agricultural market, Michelin sees the deal creating a “unique player” that offers a wide range of radial tires and tracks. On the material handling side, Michelin says it has its eyes on becoming the market leader in solid tires by leveraging Camso’s Solideal and Camso brands.
“Michelin and Camso have many values in common. This acquisition is a wonderful mutual opportunity,” says Jean-Dominique Senard, CEO of the Michelin group. “Michelin will benefit from all of Camso’s skills in the off-the-road mobility markets and Camso from the full range of Michelin’s expertise in the specialty markets.”
“Joining up with Michelin’s off-the-road teams is a fantastic opportunity for Camso because of the similarity of our cultures as well as our growth potential,” says Pierre Marcouiller, Executive Chairman of Camso. “Camso will achieve its ambition to become the global off-the-road market leader and will contribute its dynamic teams, its technical and manufacturing assets and its customer-focused mindset. The transaction has received the backing of all Camso’s shareholders.”