Camoplast Inc has acquired Solideal Group in a deal that is expected to generate significant synergies in purchasing, manufacturing, logistics and R&D.

David Shippee, Solideal USA's director of marketing, says all the employees at Solideal will be retained and there are no plans to close any plants. "In the integration plan, we will look at adjustments where it creates value to the customer at great quality level. There is very little overlap in terms of products and we know we will have a need for everybody in this growing entity."

The holding company will be named Camoplast Solideal Inc, while the Solideal and Camoplast brands will continue to be managed independently. Current Solideal shareholders have a significant participation in the ownership of the holding company. The transaction is subject to regulatory approvals expected to finalise in October.

"The combination of the two companies will create a worldwide leader in industrial tyres, construction tyres and rubber tracks for off-road vehicles. Together, the two will have a significantly greater opportunity to grow into new markets, particularly in the tyre and track segments, with an enhanced product offering, a worldwide network capacity and a strong global manufacturing presence," Shippee says.

Camoplast Solideal Inc will operate R&D and manufacturing facilities in North America, Europe and Asia, with a 7,300-strong workforce.

"Both Camoplast and Solideal employ dedicated and focused people, sharing similar values such as team work and empowerment," says Pierre Marcouiller, CEO and chairman of the board of Camoplast.

"Our combined teams will be a powerful force for innovation around their particular line of products. Together, we will also benefit from a strong financial structure and the access and sharing of the best tools and practices," he adds.

"The pooling of our two companies' strengths will add value to our stakeholders: customers, employees, shareholders and suppliers," says Paul Gaines, Solideal Group's CEO.

The value of the transaction is confidential.

Solideal, headquartered in Luxembourg, has R&D facilities in Europe and Asia, plants in Europe, North America and Asia, and over 100 distribution and service locations worldwide. It serves the tyre, wheel and rubber track needs of the materials handling and construction industries and employs over 6,000 people globally, many of whom work at the Sri Lankan and Chinese plants.

Camoplast Inc is a Canadian privately owned company composed of two groups, Camoplast Tracks and Systems and Camoplast Polymer Solutions. Camoplast Tracks and Systems manufactures rubber tracks and systems from its plants in the US, Canada, Korea and Europe. It has R&D facilities in Canada and Korea. Camoplast Polymer Solutions manufactures under-the-hood components in Canada and the US. The company employs 1,400 people globally.