Michelin announced on Thursday it plans to acquire Camso for $1.45 billion. This acquisition will result in a new off-the-road division, which will be based in Magog, Quebec, Canada---Camso’s current headquarters.
This deal will expand Michelin’s product line to include rubber tracks. Last year, Camso had sales of $1 billion, and its product line spans rubber tracks and rubber bias tires for farm equipment, construction, ATVs, utility vehicles, snowmobiles and more.
According to a company news release, Michelin is looking for synergies from this acquisition, which will form the global off-the-road division that will have 2x the net sales as Camso previously. The new division will include 26 production plants and have approximately 12,000 employees.