Tyre giant Michelin will acquire Camso, headquartered in Magog, Quebec, Canada, and 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, according to a joint statement.

Reporting net sales of USD1 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 tyres for materials handling equipment. It also ranks among the top three players in the construction market in track and tyre solutions for small heavy equipment.

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.

In the materials handling equipment market, Michelin will leverage Camso's Solideal and Camso brands to become the market leader in solid tyres.

Jean-Dominique Senard, chief executive officer of the Michelin group, says: "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," 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 mindset. The transaction has received the backing of all Camso's shareholders."