By Max Bernhard

Compagnie Generale des Etablissements Michelin (ML.FR) said Thursday that it is acquiring Canadian offroad-tire maker Camso for $1.45 billion in order to expand its specialty tire operations.

Michelin said it plans to merge the two companies' off-the-road operations into a new division.

The company expects opportunities from the deal to increase sales and reduce costs, as well as potential synergies of $55 million by 2021, it said.

Michelin's chief financial officer, Marc Henry, said the two operations were "absolutely complementary" with "not one product in competition."

"They are present where we aren't and vice versa," he said.

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

July 12, 2018 09:25 ET (13:25 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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