Michelin announces agreement to acquire Camso
Michelin and Camso have reached an agreement whereby Michelin will acquire Camso, headquartered in Magog, Quebec, Canada, and the two companies’ off-the-road (OTR) operations will be combined to form a new division to be managed from Quebec.
Reporting net sales of $1 billion, Camso has been designing, manufacturing and marketing OTR mobility solutions since 1982. Camso is a leading supplier in rubber tracks for farm equipment and snowmobiles, and in solid and bias tires for material handling equipment. It also ranks among the top players in the construction market in track and tire solutions for small heavy equipment. Leveraging its technological leadership in tracks and related systems, its competitive manufacturing footprint, particularly in Sri Lanka, and strong customer awareness of its CAMSO and SOLIDEAL brands, Camso has demonstrated its ability to grow rapidly, expanding at an average pace of 7% per year since 2012.
By joining forces with Camso, Michelin will create a top OTR market player, headquartered in Quebec. The business will benefit from the expertise of Camso’s management team and Michelin’s longstanding presence in Canada, both in Laval, Quebec and in Nova Scotia. Camso also has a strong manufacturing presence in emerging markets, particularly in Sri Lanka and Vietnam. The new entity will represent more than double the net sales of Camso, supported by 26 plants and approximately 12,000 employees and will benefit from sustainably dynamic market.
Jean-Dominique Senard, Chief Executive Officer 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.”
“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,” said 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.”
Through studies and discussions with Camso, Michelin has identified significant opportunities to increase sales and reduce costs, thereby unlocking up to $55 million in synergies by 2021. After obtaining the customary approvals, Michelin will acquire Camso for $1.45 billion.
As part of the transaction, the OTR division’s decision-making center will be based at Camso’s headquarters in Magog. The management teams, including the top executive, will work out of the Magog office.
