CLERMONT-FERRAND, France—Michelin has completed its $1.45 billion acquisition of Magog, Quebec-based off-road tire maker Camso Inc., clearing the way for the companies to start the formal merger process.
Michelin has stated on a number of occasions that it intends to meld its own OTR tire activities (farm, earthmover, off-road truck, etc.) into a new division to be based in Quebec that will oversee a global business with 26 plants, roughly 12,000 employees and annual sales exceeding $2 billion.
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.
Michelin has described Camso as a "market leader" in rubber tracks for farm equipment and snowmobiles, and in solid and bias tires for materials-handling equipment.
It also ranks among the top three players in the construction market, in track and tire solutions for small heavy equipment.
Michelin noted earlier that Camso is profitable with a 14 percent pretax operating ratio and is expected to contribute to Michelin's bottom line in its first full year of integration. Sales per employee are north of $125,000.