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Michelin Acquires Camso
Michelin, a tire company, announced Thursday it has agreed to acquire Camso, an off-the-road (OTR) track and tire company, for $1.45 billion. The two companies’ off-the-road operations will be combined and create a new division managed in Magog, Quebec (Canada).
A press statement claims, “The strategic partnership makes the newly created entity the world leader in OTR mobility.”
Since 1982 Camso has been designing, manufacturing, and marketing OTR mobility solutions rising to be a market leader in rubber tracks for farm equipment.
According to the company website, Camso employs more than 7,500 people in 26 countries. It also operates three advanced R&D centers along with 22 manufacturing plants in 10 different countries.
Since 2012 the recently acquired company has grown rapidly at an average pace of 7% per year.
Impact on Farmers
“Joining up with Michelin’s off-the-road teams is a fantastic opportunity for Camso because of the similarity of our cultures as well as our growth potential,” says Pierre Marcouiller, executive chairman of Camso. “Camso will achieve its ambition to become the global off-the-road market leader and will contribute its dynamic teams, its technical and manufacturing assets, and its customer-focused mind-set.”
A press statement explained three specific benefits the new division is expected to deliver to farmers.
First, the new division creates a unique player in the agricultural market. Michelin will be able to provide farmers with a comprehensive range of both radial tires and tracks.
By combining their efforts, researchers for the company will have more innovation capacity in tracks and airless tires allowing them to develop more problem-solving products faster.
Finally, the company explains, “Michelin’s technological breakthroughs in reducing soil compaction while maintaining superior traction, for example, will contribute to the products that Camso develops.”