Michelin has announced it plans to acquire 100 per cent of Camso and all of its subsidiaries.
On July 12, the tire company announced its intention to merge its off-highway transportation business with Camso. The announcement follows the signing of an agreement where Michelin will acquire the off-road tire company for US$1.45 billion.
“Michelin and Camso have many values in common,” said Jean-Dominique Senard, chief executive officer of the Michelin Group.
The two companies’ off the road operations will be combined to form a new division that will be managed in Quebec.
A press conference is schedule for 2:30 p.m. this afternoon, where Senard and Pierre Marcouiller, executive chairman of the board of directors of Camso Inc. will explain how the two companies will create “a world-leader” for off-the-road mobility.
“Joining up with Michelin’s off-the-road teams is a fantastic opportunity because of the similarity of our cultures as well as our growth potential,” Marcouiller said. “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.”
The Quebec company is a designer, manufacturer and distributor of off-highway tires, wheels, rubber tracks and undercarriage systems for the material handling, construction, agricultural and power sports industries.
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The company employs more than 7,500 employees and controls about 11 per cent of the global off the road tire market.
Reporting net sales of about US$1 billion, Camso has been manufacturing off the road tires since 1982. Since 2012, the company has grown rapidly at about 7 per cent per year.
The merger will create the world’s top player in the off the road tire market. 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. The new entity will represent more than double previous net sales, supported by 26 plants and about 12,000 employees.