The deal to acquire Camso is worth about US$1.45 billion
By Diego Flammini
Staff Writer
Farms.com
A French tire manufacturer has purchased a Canadian manufacturer of agricultural tires and tracks.
Yesterday, Michelin announced its acquisition of Camso, worth about US$1.45 billion.
The deal represents a chance for both companies to learn from one another, said Jean-Dominique Senard, CEO of Michelin.
“This acquisition is a wonderful opportunity,” he said in a statement yesterday. “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.”
Camso manufacturers several tracks for a variety of equipment.
The company can make tracks for tractors, combines and sprayers for many of the leading ag machinery brands, the company’s website says.
In February, Camso introduced technology that monitors track temperatures and determines machine speed while avoiding heat buildup. Too much heat can cause track damage.
Considering the popularity of tracks on some pieces of farm equipment, the opportunity to make a move of this size felt right, said Marc Henry, chief financial officer with Michelin.
“The specialty-tire market is by far the fastest growing,” he told reporters today, The Business Times reports. “This merger is a perfect fit for Michelin and Camso.”
The companies do not anticipate the acquisition will result in any job losses.
Michelin agreed to keep Camso’s headquarters in Magog, Que. open. Employment losses at Michelin plants in France aren’t forecasted either, Henry said.