Michelin says it will purchase off-road tire maker Camso for about $1.45 billion.
Privately held Camso reports annual sales of $1 billion with its Camso and Solideal tire brands.
The combined off-road operations will be run from Camso’s current headquarters in Magog, Quebec, Michelin said. The new off-road division will consist of 26 plants internationally and about 12,000 employees, including 7,700 from Camso.
Michelin says cooperation between Camso and Michelin researchers will bolster the group’s innovation capacity in tracks and airless tires. Cross-fertilization of R&D expertise will support Michelin’s goals of sustainable mobility in terms of long-lasting performance of tires as a differentiating factor and a key strength for reducing its environmental footprint. In addition, Michelin’s technological breakthroughs in reducing soil compaction while maintaining superior traction, for example, will contribute to the products that Camso develops.
Last March, Michelin bought U.K.-based conveyor-belt maker Fenner Plc for $1.6 billion, strengthening the its presence in mining equipment.