Michelin moving ahead with take-over of Camso

Michelin – the tyre manufacturing giant – is in the process of acquiring Camso.

Camso manufactures rubber tracks for agricultural equipment and snowmobiles, as well as solid and bias tyres for material-handling equipment.

The two companies’ off-the-road (OTR) operations are now being combined to form a new division to be managed from Quebec (Canada).

Both Michelin and Camso claim that the newly-created entity will be the “world leader in OTR mobility”.

Camso has been designing, manufacturing and marketing its wares since 1982. It claims to be the market leader in rubber tracks for agricultural equipment and snowmobiles and, also, in solid and bias tyres for material-handling equipment.

In the agricultural market, the new entity’s objective is to “provide customers with a comprehensive range of premium radial tyres and tracks“.

Tracks and airless tyres

Cooperation between Camso and Michelin researchers is expected to bolster the group’s development of new track and airless tyre technology.

Jean-Dominique Senard, chief executive officer of the Michelin group, commented: “Michelin and Camso have many values in common.

We will benefit from all of Camso’s skills in the off-the-road mobility markets. Camso will benefit from the full range of our expertise in the specialty markets.

Pierre Marcouiller, executive chairman of Camso, added his comments. He said: “Joining up with Michelin’s off-the-road teams is a fantastic opportunity for us because of the similarity of our cultures, as well as our growth potential.

“Camso will achieve its ambition to become the global off-the-road market leader. The transaction has received the backing of all Camso’s shareholders.”

Through discussions with Camso, Michelin claims to have identified “significant opportunities to increase sales and reduce costs”, thereby unlocking “up to $55 million in synergies by 2021”.

After obtaining the customary approvals, it intends to complete the acquisition of Camso for $1.45 billion, corresponding to an ‘enterprise value’ of $1.7 billion.