Michelin is all set to acquire Camso to strengthen its specialty
business for USD 1.45 Billion. The off-road operations likely to be combined
and run from Camso’s headquarters in Magog, Quebec.
United States: French tire-maker Michelin is
strengthening its specialty business with a USD 1.45 Billion deal to
acquire Camso, a Canadian producer of rubber tracks for farm
equipment and snowmobiles. The off-road operations of both the companies are
likely to be combined and run from Camso’s headquarters in Magog, Quebec. Camso
makes tires for material-handling equipment and has sales of $1 billion.
According to
Michelin’s Chief Financial Officer the specialty-tire market is the
fastest-growing, posting growth at around 4 percent a year. The merger is being
touted as a perfect fit for Michelin and Camso.
The deal is
Michelin’s second acquisition for FY2018, that is worth more than USD1 Billion
and aimed at diversifying the tire-manufacturing giant away from car and truck
tires. The French manufacturer’s agreement in March to buy U.K.-based
conveyor-belt maker Fenner Plc for about USD 1.6 Billion is expected to
reinforce its presence in mining equipment.
Camso ranks among
the top players in making tracks and tires for construction equipment, as per
Michelin’s statement. The company, which has a manufacturing site in Sri Lanka,
has grown at an average of 7 percent a year since 2012.
According to the
recently published report by TechSci Research, “Global Tire Market, 2013 – 2023” Global
tire market stood at around $ 204 billion in 2017 and is projected to reach $
304 billion by 2023, on the back of growing vehicle sales and fleet across the
globe.
According to the
recently published report by TechSci Research, “Global OTR Tire Market, 2012-2022” Global
OTR tire market stood at $19.23 billion in 2016, and is projected to exhibit a
CAGR of over 8%, in value terms, to reach $ 30.40 billion by 2022, on account
of increasing use of heavy machineries and equipment in agriculture, mining and
industrial sectors.
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