Michelin agreed to buy Camso, a Canadian producer of rubber tracks for farm equipment and snowmobiles, for $1.45 billion (all figures US) as the French tiremaker bolsters its specialty-equipment business.
The two companies’ off-road operations will be combined and run from Camso’s headquarters in Magog, Que., Michelin said in a statement Thursday. Closely held Camso, which also makes tires for material-handling equipment, has sales of $1 billion.
“This acquisition is a wonderful mutual opportunity,” Michelin chief executive officer Jean-Dominique Senard said in the statement. “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.”
The acquisition is the second deal of more than $1 billion announced by Michelin this year, and both of them diversify the Clermont Ferrand, France-based company away from car and truck tires. Michelin agreed in March to buy U.K.-based conveyor-belt maker Fenner Plc for about $1.6 billion, strengthening the buyer’s presence in mining equipment.
Camso ranks among the top three companies in making tracks and tires for construction equipment, Michelin said. The company, which has a manufacturing site in Sri Lanka, has grown at an average of 7 per cent a year since 2012.