Michelin buying Brazilian cycle tire maker

PARIS (Aug. 29, 2016) — Group Michelin is acquiring Levorin Pneus e Camaras, a Brazilian manufacturer of bicycle and motorcycle tires, in order to strengthen its global development capabilities for two-wheeler tires and consolidate its presence in Brazil.

Founded in 1943 by Hercules Levorin, the family business generated sales of $155 million last year with 2,000 employees at plants in Sao Paulo and Manaus, Brazil, Michelin said.

The company also is active in retreading, offering products in consumer and commercial markets, including agricultural and mining applications, along with tread rubber, tubes and retreading supplies.

Michelin said acquiring Levorin will help it strengthen its position in the commuter segment — which it said is “significant and expanding” — and complement its range of tires that are oriented more toward the high-end leisure market.

Financial terms of the deal, subject to closing conditions and to the approval of the Brazilian competition authorities, were not disclosed.

Levorin's plants' combined capacities are 20 million units annually, the company reported. Levorin states it is the only manufacturer worldwide using Amazonian natural rubber in tires.