Michelin : Michelin Strengthens its Global Leadership Position in the Specialty Businesses With the Acquisition of Camso
12 Luglio 2018 - 3:00PM
Press
release
Clermont-Ferrand - July 12, 2018 - 3:00PM
COMPAGNIE GÉNÉRALE
DES ÉTABLISSEMENTS MICHELIN
Michelin Strengthens its Global Leadership
Position in the Specialty Businesses With the Acquisition of
Camso
Michelin and Camso join forces to create the leader in off-the-road
(OTR) mobility solutions. The result of a genuine strategic
partnership in the OTR segment, the new division will be managed
from Quebec, Canada.
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Michelin and Camso today reached
an agreement whereby Michelin will acquire Camso, headquartered in
Magog, Quebec, Canada, and whereby the two companies' off-the-road
(OTR) operations will be combined to form a new division to be
managed from Quebec. Led by a set of common values and a strong
tradition of innovation and R&D at both Michelin and Camso, and
backed by high-quality teams, the strategic partnership makes the
newly created entity the world leader in OTR mobility.
Reporting net sales of US$1
billion, Camso has been designing, manufacturing and marketing OTR
mobility solutions since 1982. Camso is a market leader in rubber
tracks for farm equipment and snowmobiles, and in solid and bias
tires for material handling equipment. It also ranks among the top
three players in the construction market, in track and tire
solutions for small heavy equipment. Leveraging its technological
leadership in tracks and related systems, its competitive
manufacturing footprint, particularly in Sri Lanka, and strong
customer awareness of its CAMSO and SOLIDEAL brands, Camso has
demonstrated its ability to grow rapidly, expanding at an average
pace of 7% per year since 2012.
By joining forces with Camso,
Michelin will create the world's number one OTR market player,
headquartered in Quebec. The business will benefit from the
expertise of Camso's management team and Michelin's long-standing
presence in Canada, both in Laval, Quebec and in Nova Scotia. As
world leader, the new entity will represent more than double the
net sales of Camso, supported by 26 plants and approximately 12,000
employees and will benefit from sustainably dynamic markets.
Thanks to the complementary
positioning of the two companies' product and service offerings,
the transaction is expected to deliver the following benefits:
-
In marketing and sales:
-
In the agricultural market, the creation of a
unique player providing its customers with a comprehensive range of
premium radial tires and tracks.
-
In the construction market, Camso will reinforce
Michelin's offering with its bias tires and tracks offers.
-
In the material handling equipment market,
Michelin will leverage Camso's renowned SOLIDEAL and CAMSO brands
to become the market leader in solid tires.
The deployment of the new entity's
offer will be accelerated by the complementarity of both Michelin
and Camso's distribution networks.
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 enable the teams to consolidate the Group's position
as a global technological leader in support of sustainable
mobility, as Michelin's headway in terms of long-lasting
performance of tires is 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.
· In
manufacturing:
A strong manufacturing presence of Camso in emerging markets,
particularly in Sri Lanka and Vietnam.
Jean-Dominique Senard, Chief
Executive Officer of the Michelin group, said: "Michelin and Camso
have many values in common. This acquisition is a wonderful mutual
opportunity. 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."
"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,"
said 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 mindset. The
transaction has received the backing of all Camso's
shareholders."
Through studies and discussions
with Camso, Michelin has identified significant opportunities to
increase sales and reduce costs, thereby unlocking up to US$55
million in synergies by 2021. After obtaining the customary
approvals, Michelin will acquire Camso for US$1.45 billion,
corresponding to an enterprise value of US$1.7 billion, i.e., a
multiple of 8.3 times EBITDA* after synergies. The transaction will
not impact the Group's robust financial position.
As part of the transaction,
Michelin has made the following commitments:
-
The OTR division's decision-making
center will be based at Camso's headquarters in Magog. The
management teams, including the top executive, will work out of the
Magog office.
-
Headcount at Camso headquarters (300
employees, of which 100 in R&D) will remain stable, and
existing R&D operations and production jobs in Quebec will be
maintained.
-
The new skill sets required to oversee
this global business, and the anticipated growth in the division's
net sales, will lead to the creation of new high-quality jobs in
the Magog region in the coming years.
With this transaction, the Michelin Group is
confirming its strategic commitment to expanding in the tires and
services domains while rolling out its strategy in materials and
distribution. Michelin also indicates that, following a thorough
analysis, the synergies expected to result from the Fenner
acquisition have been revised upward, to £60 million from the
initially announced £30 million.
In accordance with EU regulation
no. 596/2014, we hereby inform you that this press release may
contain inside information.
*(April 1, 2018 -
March 31, 2019)
Camso
2018 net sales (2017-04-01 to 2018-03-31): US$974
million
7,700 employees
17 production facilities
3 R&D centers
Commercial operations in 100 countries |
Investor Relations
Edouard de Peufeilhoux
+33 (0) 4 73 32 74 47
+33 (0) 6 89 71 93 73 (mobile)
edouard.de-peufeilhoux@michelin.com
Matthieu Dewavrin
+33 (0) 4 73 32 18 02
+33 (0) 6 71 14 17 05 (mobile)
matthieu.dewavrin@michelin.com
Humbert de Feydeau
+33 (0) 4 73 32 68 39
+33 (0) 6 82 22 39 78 (mobile)
humbert.de-feydeau@michelin.com
|
Media Relations
Corinne Meutey
+33 (0) 1 78 76 45 27
+33 (0) 6 08 00 13 85 (mobile)
corinne.meutey@michelin.com
Individual Shareholders
Isabelle Maizaud-Aucouturier
+33 (0) 4 73 98 59 27
isabelle.maizaud-aucouturier@michelin.com
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20180712_PR_Michelin_Camso
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