Michelin has agreed to acquire Camso, a portfolio company of Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ.
According to a statement from Michelin, it will acquire Camso for US$1.45bn, corresponding to an enterprise value of US$1.7bn.
Following the agreement, the two companies will merge their off-the-road (OTR) operations to form a new division to be managed from Quebec. By joining forces with Camso, Michelin is poised to create the world’s number one OTR market player.
As part of the agreement of buying Camso from CDQP and Fonds de solidarité, Michel commits to maintaining OTR division’s decision-making center at Camso’s headquarters in Magog. The management teams, including the top executive, will work out of the Magog office. The headcount at Camso headquarters comprising of 300 employees, of which 100 in R&D, will remain stable. More so, existing R&D operations and production jobs in Quebec will be maintained.
Apart from the creation of a unique player providing its customers with a comprehensive range of premium radial tires and tracks, the agreement is also expected to bolster Michelin’s innovation capacity in tracks and airless tires and improve Camso’s manufacturing presence in emerging markets, particularly in Sri Lanka and Vietnam.
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