PARIS, July 12 (Reuters) - French tyre maker Michelin said it was buying Canadian firm Camso for $1.45 billion, and aimed to unlock up to $55 million in synergies from the takeover by 2021.
Camso, which had net sales of $1 billion, designs and manufactures off-the-road (OTR) material such as rubber tracks for farm equipment and snowmobiles, and Michelin said its acquisition would create a world leader in the OTR sector.
“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,” said Michelin chief executive Jean-Dominique Senard in a statement.
Michelin added it had also increased its estimate of synergies from its earlier acquisition of Fenner to 60 million pounds ($79 million) from 30 million.
Michelin shares were up 2.3 percent in late session trading.
$1 = 0.7564 pounds Reporting by Laurence Frost; Editing by Sudip Kar-Gupta