Michelin is to acquire Camso for US$1.45bn. The merging of the two companies will see both their off-the-road business arms combined to form a new division managed by Camso in Quebec, Canada.
The business will benefit from the expertise of Camso’s management team and Michelin’s long-standing presence in Canada, both in Laval, Quebec, and in Nova Scotia.
Thanks to the complementary positioning of the two companies’ product and service offerings, the transaction is expected to deliver numerous benefits.
In the construction market, Camso’s portfolio will reinforce Michelin’s offering with a selection of bias tires and tracks; in the materials handling equipment market, Michelin will leverage Camso’s Solideal and Camso brands to become a market leader in solid tires.
Cooperation between Camso and Michelin researchers will bolster the group’s innovation capacity in tracks and airless tires. Cross-fertilization of R&D expertise will enable the teams to consolidate the group’s position as a global technological leader in support of sustainable mobility.
In addition, Michelin’s technological breakthroughs in reducing soil compaction while maintaining superior traction, for example, will contribute to the products that Camso develops.
Furthermore, Camso has a strong manufacturing presence in emerging markets, particularly in Sri Lanka and Vietnam.
Jean-Dominique Senard, CEO of the Michelin group, said, “Michelin and Camso have many values in common. This acquisition is a wonderful mutual opportunity. 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.”
Pierre Marcouiller, executive chairman of Camso, commented, “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.
“Camso will pursue 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.”
Following numerous discussions with Camso, Michelin has identified significant opportunities to increase sales and reduce costs – ultimately resulting in up to US$55m of cost savings and sales growth by 2021.
The OTR division’s decision-making center will be based at Camso’s headquarters in Magog, Quebec. Management will work out of the Magog office.
All of the 300 employees at Camso’s headquarters in Quebec will keep their jobs. The new skillsets required to oversee this global business, and the anticipated growth in the division’s net sales, will lead to the creation of new high-quality jobs in the Magog region in the coming years.